State Of Indian Ecommerce, Q3 2022

Table Of Contents 1513111065347916 Table Of Contents The State Of Ecommerce Unicorns & Soonicorns25 The RevenueList Analysis Ecommerce Startups On The IPO Ladder34 Most Active Ecommerce Investors In Q2 202237 Survey: India's D2C Founders Key Challenges For D2C Brands In India90 Ecommerce Trends To Watch Out For Infocus: D2C 70 Early Stage D2C Startups Making Waves6138 Listed UpcomingIPOsIPOsIndianD2CStartups: Key Statistics India’s D2C Landscape: Key Segments Evolution Of D2C In India (Lifecycle graph) Category Deep Dive In D2C India’s D2C Startup Landscape Funding FinancialTrendsPerformance AnalysisMoM AverageFundingTicket Size Sectors With Maximum Funding Stagewise Analysis Top Hubs For Ecommerce Funding (Tier-1 andTier 2 & Above) Mergers & Acquisitions India’s Digital Economy In A Nutshell India’s Startup Economy: A Snapshot Indian Ecommerce Market: A Snapshot Indian Ecommerce Market: Key Statistics Ecommerce Market Opportunity In India Ecommerce Startups: The Funding Funnel India’s Ecommerce Landscape: Key Segments & Startups India’s Ecommerce Ecosystem Q2 2022: Key Highlights Ecommerce Startups that Bagged Biggest Funding Rounds In Q2 2022 Notable acquisitions in India’s Ecommerce Space In Q2 2022 India’s Ecommerce Ecosystem: Funding Trends 91 © INC42 MEDIA NOT FOR DISTRIBUTION / 2

State Of Indian Digital Economy 44% Increase In Internet Users From 2022 To 2030 61% Internet Penetration In India 1.3 Bn+ Internet Users By 2030 305 Mn+ Users Doing IndiaTransactionsOnlineIn 4.7 Hours Average Hours Spent On Mobile Per Day Per User $0.68 Per GB Internet Cost In India 373 Mn+ Estimated Rural Internet Users In 2022 $2.3 Tn+ Total Value Of UPI Transactions As On July 2022 110 Bn+ Total No. Of UPI Transaction As On July 2022 Source: Statista, NPCI, Bain & Company, App Annie (Mn)UsersInternet 1,5001,0005000 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 846 932 1,008 1,075 1,134 1,186 1,132 1,273 1,310 1,343 © INC42 MEDIA NOT FOR DISTRIBUTION / 3

57K5K+1,088 $131 BnLaunchesStartupFundedStartupsInIndiaM&ADealsRecordedBetween2014AndH12022 Funding Raised By Startups Between 2014 And H1 2022 1,245 Investors Participated In Startup Funding Between 2015 and H1 2022 18 Indian Internet Companies Listed To Date Indian Startups In The Unicorn CombinedClubValuation Of Indian Startups$450106Bn+ Indian Startup Economy: A Snapshot © INC42 MEDIA NOT FOR DISTRIBUTION / 4

India’s Ecommerce Market: A Landscape Estimated OpportunityMarketBy2030$400 Bn Estimated (2022-2030)CAGR18.9% Number Of Active Startups In India5,127 Funding H1BetweenRaised2014And2022$30 Bn Number Of Funded Startups In India682 Number Of M&As During H1 2022170 Number UnicornsOfIn India23 Number SoonicornsOf In India16 Ecommerce Subsector With The Highest Number Of Unicorns Marketplace Market Size And Growth Venture Capital Unicorns & Soonicorns © INC42 MEDIA NOT FOR DISTRIBUTION / 5

Indian Ecommerce Market: Key Statistics Number Of Internet Users, 2022932 Mn+ Number Of Online Shoppers, FY2022128 Mn+ Smartphone Penetration, 202261% World Rank In Cross Border Ecommerce Growth, 20209th FDI In B2B Ecommerce & Marketplace Model Of Ecommerce Under The Automatic Route 100% Increase In The GMV (Gross Merchandise Value) Of Generated Sales During Festive Season 2021 (Worth $9.2 Bn) Compared To 2020 23% Average Monthly Mobile Data Consumption Per User, 202117 GB © INC42 MEDIA NOT FOR DISTRIBUTION / 6

Bn)$(InSizeMarketEcommerce 400.0300.0200.0100.00.0 2022F 2023F 2024F 2025F 2026F 2027F 2028F 2029F 2030F India’s Ecommerce Market To Surpass $400 Bn By 2030 The country’s ecommerce market is estimated to grow at a CAGR of 19% during 2022-2030 Source: Deloitte, Inc42 © INC42 MEDIA NOT FOR DISTRIBUTION / 7

Online Shoppers Are Projected To Reach 350 Mn By 2025 Online shoppers will be growing at a CAGR of 28.5% during FY 2020- FY 2025 Mn)(InShoppersOnlineOfNumber 4003002001000 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 Source: Bain and Flipkart Report 2020 © INC42 MEDIA NOT FOR DISTRIBUTION / 8

Ecommerce Startups: The Funding Pyramid Note: This is on the basis of number of startups funded during 2014- Q1 2022 Source: Inc42 77 Late Stage StartupsEcommerceInIndia 433 Seed Stage Ecommerce Startups In India 5,127682 Funded Ecommerce Startups In India Active Ecommerce Startups In India 197 Growth InEcommerceStageStartupsIndia © INC42 MEDIA NOT FOR DISTRIBUTION / 9

EcommerceB2BRecommerce ElectronicAutomotiveClassifiedsGadgets Enabler RollSaaSPaymentMarketingLogisticsGatewayUpsIndustrialGoodsFMCGMarketplaceCommerceSocial Live ContentCommerceCommerce D2C OthersConsumerHomeFashionFMCGDecorElectronics India’s Ecommerce Landscape: Key Segments Marketplace Total Funded StartupsTotal200+Funding Amount $17.1 Bn VerticalHorizontal Total Funded StartupsTotal25+ Funding Amount $939.8 Mn Total Funded StartupsTotal50+ Funding Amount $2.7 Bn Total Funded StartupsTotal180+Funding Amount $4.2 Bn Total Funded StartupsTotal50+ Funding Amount $810.7 Mn Total Funded StartupsTotal75+ Funding Amount $4.2 Bn Note: Funding is for the period 2014 to H1 2022 © INC42 MEDIA NOT FOR DISTRIBUTION / 10

Ecommerce Funding Trends in Q2 2022: A Snapshot Total Funding Raised YoY Decline In Total Funding Average Ticket Size For EcommerceDeals$1.2 38.3%Bn+ Number Of Unique Funded Startups Total Deal CountTop7379 Startup Hub Delhi NCR$19 Mn YoY Surge In Seed Stage Funding 272% Most Active Ecommerce Investors Note: The error in top startup hub was updated from Bengaluru to Delhi NCR, on 7 September 2022. © INC42 MEDIA NOT FOR DISTRIBUTION / 12

Ecommerce Startups That Bagged Biggest Funding Rounds In Q2 2022 Sub-SectorCompany Name EcommerceD2CD2C Enabler B2B D2CB2BRecommerceEcommerceEcommerce Funding Stage Late Stage Late LateLateLateGrowthSeedStageStageStageStageStageStage Funding Amount $108 Mn $100 Mn $100 Mn $100 Mn $90 Mn $65 Mn $50 Mn Venturi Partners, Trifecta Capital, IIFL Asset Management, Elevation Capital, Orios Ventures Alpha Wave Global KKR, SoftBank, Alpha Wave Global, Temasek Prosus Ventures, WestBridge Capital, Accel, Elevation Capital, DisruptAD NewQuest, Prosus Ventures, Bessemer, Blume Ventures, Olympus Capital Lighthouse India, Creaegis, Health Quad, Ackermans & Van Haaren, British International Investment L Catterton, A91 Partners, Elevation Capital, India Quotient Notable Participating Investors © INC42 MEDIA NOT FOR DISTRIBUTION / 13

Sub-SectorCompany Name B2B B2BD2CD2CB2BD2CD2CEcommerceEcommerceEnablerEcommerceEcommerce Funding GrowthGrowthLateGrowthLateUndisclosedGrowthUndisclosedStageStageStageStageStageStageStage Funding Amount $50 Mn $50 Mn $48 Mn $45 Mn $40 Mn $33 Mn $30 Mn $28 Mn Liquidity Group's MARS Unicorn Fund Winter Capital, 9Unicorns, Venture Catalysts, Vivriti Capital, Oxyzo AlphaGIC Wave Global, Tiger Global Management, Elevation Capital, Think Investments Tiger Global Management, Alpha Wave Global, Sparrow Capital, Stride Ventures Paramak Ventures, Premji Invest, Blume Ventures, Kedaara WestBridge Capital Tiger Global Management, Info Edge Notable Participating Investors © INC42 MEDIA NOT FOR DISTRIBUTION / 14

Notable Acquisitions In India’s Ecommerce Space In Q2 2022 Company StageCompany Name Seed BootstrappedBootstrappedSeedGrowthBootstrappedStageStageStage Government Of Karnataka, Department Of Science & Technology, Qualcomm Accel,N/A Vertex Ventures, CDH Investments, Korea Investment Partners Mumbai Angels N/AN/A Acquired By Notable Investors Source: Inc42 Note: N/A stands for not available © INC42 MEDIA NOT FOR DISTRIBUTION / 15

Ecommerce Funding Dropped Drastically In 2022 After A 12X Jump In 2021 On a YoY level, ecommerce startups are likely to see decline in total funding in 2022 compared to 2021 Bn)$(InAmountFunding CountDeal12.010.08.06.04.02.00.0 3002001000 2014 2015 2016 2017 2018 2019 2020 2021 H1 2022 Funding Amount (In $ Bn) Deal Count Note: The funding data in 2022 is only considered till 30th June, 2022 Source: Inc42 © INC42 MEDIA NOT FOR DISTRIBUTION / 16

Ecommerce Funding Continues To Decline On A QoQ Basis Bn)$(InAmountFunding CountDeal6.04.02.00.0 1251007550250 Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 Q2-2022 Funding Amount (In $ Bn) Deal Count Note: The funding data in 2022 is only considered till 30th June, 2022 Source: Inc42 © INC42 MEDIA NOT FOR DISTRIBUTION / 17

Average Ticket Size For Ecommerce Funding Drops To $19 Mn In Q2 2022 From its highest value i.e., $132.9 Mn in Q4 2021, the average ticket size decline by 86% in Q2 2022 Mn)$(InSizeTicketAverage 150.0100.050.00.0Q1-2018 Q2-2018 Q3-2018 Q4-2018 Q1-2019 Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q2-2020 Q3-2020 Q4-2020 Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 Q2-2022 Source: Inc42 © INC42 MEDIA NOT FOR DISTRIBUTION / 18

Ecommerce Funding Showed 63% Jump In Q2 2022 On A YoY Basis D2C turned out to be the most-funded ecommerce sub-sector in Q2 2022 Recommerce 10.0% Marketplace 3.1% Ecommerce Enabler 10.5% D2C 26.0% B2B Ecommerce 50.4% $0.7 FundingEcommerceBnInQ22021 $1.2 FundingEcommerceBnInQ22022 Others 1.7% Recommerce 7.7% Ecommerce Enabler 13.8% B2B Ecommerce 25.8% D2C 51.0% Source: Inc42 Note: Others in Q2 2022 includes funding raised by social commerce and marketplace startups © INC42 MEDIA NOT FOR DISTRIBUTION / 19

Others 5.1% Ecommerce Enabler 6.3% Marketplace 10.1% B2B Ecommerce 12.7% D2C 58.1% InFunding43DealsQ22021 InFunding79DealsQ22022 Ecommerce Funding Deals Showed 84% Jump In Q2 2022 On A YoY Basis D2C bagged maximum funding deals among ecommerce sub-sectors in Q2 2022 Others 7.0% Marketplace 9.3% Ecommerce Enabler 11.6% B2B Ecommerce 14.0% D2C 65.8% Source: Inc42 Note: Others in Q2 2022 includes funding raised by social commerce and marketplace startups © INC42 MEDIA NOT FOR DISTRIBUTION / 20

Ecommerce Startups Raised $3.1 Bn In The First Six Months Of 2022 Q2 2022 witnessed a decline of 38.3% in the ecommerce funding as compared to the previous quarter Bn)$(InAmountFunding 1.00.80.50.30.0 January February March April May June Source: Inc42 © INC42 MEDIA NOT FOR DISTRIBUTION / 21

Seed Stage Saw The Highest YoY Surge In Funding Deals For Ecommerce Startups In India Q2 2022 witnessed a decline of 38.3% in the ecommerce funding as compared to the previous quarter CountDeal 806040200 Q2 2019 Q2 2020 Q2 2021 Q2 2022 Bridge Funding Seed Stage Growth Stage Late Stage +129% (Seed Stage) +100% (Bridge Funding) +56% (Late Stage) +46% (Growth Stage) Source: Inc42 © INC42 MEDIA NOT FOR DISTRIBUTION / 23

Delhi NCR Remains Top Destination For Ecommerce Startup Funding Funding Amount (In $ Bn) 2022)(Q2SpaceEcommerceInHubsStartup5Top Delhi BengaluruMumbaiNCRThaneJaipur0.00 0.20 0.40 0.60 0.80 Deal Count 2022)(Q2SpaceEcommerceInHubsStartup5Top Delhi BengaluruNCRMumbaiJaipurThane 0 10 20 30 © INC42 MEDIA NOT FOR DISTRIBUTION / 24

The State Of Ecommerce Unicorns & Soonicorns In India UnicornsCombined Valuation Total Capital Raised $8623 $28.6BnBn HubsTop SoonicornsCombined Valuation Total Capital Raised $5.316 Bn $2.1 Bn 10 Marketplace 04 B2B Ecommerce 03 D2CSubsectorsTop 08 D2C 04 B2B Ecommerce 03 MarketplaceSubsectorsTop 11 Delhi NCR 07 Bengaluru 04 Mumbai TopHubs 07 Mumbai 05 Bengaluru 04 Delhi NCR © INC42 MEDIA NOT FOR DISTRIBUTION / 25

Inside India’s Ecommerce Unicorns SegmentCompany Name B2BMarketplaceEcommerceMarketplaceMarketplaceMarketplaceSocialRecommerceCommerceEnablerEcommerce MumbaiMumbaiDelhiBengaluruPuneDelhiBengaluruDelhiHeadquartersNCRNCRNCR 20212021202120122020202120222020UnicornBecameIn Notable Investors DST Global, Falcon Edge Capital, Sequoia Capital India, SoftBank Matrix Partners, Omidyar Network, InnoVen Capital, DST Global BEENEXT, Digital Garage, Lightbox Ventures, Toyota Tsusho Corporation IDG Capital, Elevation Capital,Chiratae Ventures, SoftBank, PremjiInvest Accel, Axis Bank, DST Global, eBay, Flipkart, GIC, Naspers, SoftBank Chiratae Ventures, Chrys Capital, FirstCry, Lightspeed India Partners Accel, Amazon, Ascent Capital, Bessemer Venture Partners Accel,InnoVen Capital, Nexus Venture Partners, Tiger Global Management Years 560510745UnicornTo 0.40.30.312.60.70.30.61.3(InFunding$Bn)2.51.21.137.62.01.21.61.8(InValuation$Bn) © INC42 MEDIA NOT FOR DISTRIBUTION / 27

SegmentCompany Name MarketplaceB2BEcommerceSocialD2CMarketplaceD2CD2CCommerceEnablerEcommerce BengaluruBengaluruDelhiHeadquartersNCR Delhi NCR MumbaiDelhiBengaluruBengaluruNCR 20202021202120212021202220212019UnicornBecameIn Notable ChirataeInvestorsVentures,PremjiInvest, SoftBank, Temasek Holdings, TPG 3One4 Capital, Bertelsmann, IIFL Asset Management,Temasek Holdings Kohlberg Kravis Roberts, Trifecta Capital, Tahoe Investment Group Fireside Ventures, Sequoia Capital India, Shilpa Setty, Sofina B Capital Group, DST Partners, Facebook, Investopad, Prosus & Naspers Accel, Alpha Wave Incubation, Alteria Capital, Falcon Edge Capital Accel,Bessemer Venture Partners, Tiger Global Management Fidelity Management and Research Company, Lighthouse Funds Years 86065898UnicornTo 0.10.50.21.10.10.40.50.8(InFunding$Bn)14.01.01.04.91.11.21.02.5(InValuation$Bn) © INC42 MEDIA NOT FOR DISTRIBUTION / 28

Bank, Matrix Partners

SoftBank, Alibaba Group, Kalaari Capital, BlackRock, Intel Capital

Abu Dhabi Growth Fund, Accel, Blume Ventures, Elevation Capital

Partners Years 26451126UnicornTo 1.50.51.80.30.33.00.9(InFunding$Bn)3.11.0N/A0.11.12.03.0(InValuation$Bn) © INC42 MEDIA NOT FOR DISTRIBUTION / 29

Helion Venture Partners, Nexus Venture Partners, GIC,InnoVen Capital

SoftBank, Alibaba Group, Sachs, Sequoia Capital, PremjiInvest, Ventures

BlackSoil Capital, DST Global, InnoVen Capital,Lightspeed Venture

Notable Capital, Mahindra

eBay Goldman

SegmentCompany Name B2B B2BRecommerceMarketplaceMarketplaceMarketplaceMarketplaceEcommerceEcommerce BengaluruDelhiDelhiDelhiMumbaiDelhiDelhiHeadquartersNCRNCRNCRNCRNCR 2018202120142016202220182021UnicornBecameIn

FalconEdgeInvestorsCapital, InnoVen

IvyCap

Kotak

SegmentCompany Name B2BD2C Ecommerce B2B Ecommerce B2B Ecommerce SocialD2CD2C Commerce D2CD2C MumbaiMumbaiBengaluruBengaluruHeadquarters Delhi NCR Mumbai Delhi NCR Bengaluru Delhi NCR Founded In Funding Amount (In $ Mn) 201220142019201620162015201520152014 Notable SequoiaInvestorsCapital, SIG, Verlinvest Nexus Venture Partners, Kalaari Capital, Alteria Capital, Invus,Heron Rock Fund Accel, Addventures, B Capital Group, CDC Group, Chiratae Ventures, Tiger Global Management Lighthouse Funds, CDC Group, Toppan Printing Qualcomm ventures, Warburg Pincus, InnoVen Capital,Fireside Ventures,Navi Technologies Paragon Partners India, RPSG Capital Ventures, Sharrp Ventures Elevation Capital, Accel, WaterBridge Ventures, General Catalyst Partners, Jungle Ventures GIC, Chrys Capital Tiger Global Management, Innoven Capital, Elevation Capital, Think Investments861731123811617724015161 © INC42 MEDIA NOT FOR DISTRIBUTION / 31

Indian Ecommerce Startups: Listed Companies Last Private ValuationCompany Name $525 Mn $1.2 Bn N/A Valuation At IPO Price $1 $0.5$12BnBnBn $376 Mn $8 Bn $2 CurrentBnMarket Cap Note: N/A stands for Not Available Note: The market capitalisation of CarTrade, Nykaa, and IndiaMart indicates data recorded on 30th August, 2022 Source: Inc42 © INC42 MEDIA NOT FOR DISTRIBUTION / 34

Indian Ecommerce Startups: Expected IPOs HeadquartersCompany Name Delhi-NCRMumbaiPuneDelhi-NCRDelhi-NCRBengaluru Last Private Equity Valuation $37.6 Bn $1.4N/A $2.7-Bn$3 Bn $1N/ABn $60 Bn $1.5 Bn $2 $2N/A$6-7BnBnBnTargeted IPO Valuation Note: N/A stands for Not Available Source: Inc42 © INC42 MEDIA NOT FOR DISTRIBUTION / 35

IndiaMART's Share Price Hit The Peak Since Its IPO IPOSincePriceShareInChange% -100.0%0.0% -60.4% 19.7% 353.1%400.0%300.0%200.0%100.0% CarTrade Source: Inc42 Plus, NSE Note: Last traded price is the stock closing price on August 29, 2022.Nykaa IndiaMART IPO Price (In INR)Company Name 9731,1251,618 Last Traded Price (LTP) (In INR) 4,408.91,346.4640.7 % Change In Share Price Since IPO 353.1%19.7%-60.4% © INC42 MEDIA NOT FOR DISTRIBUTION / 36

In Focus D2C (Direct To Consumer) © INC42 MEDIA NOT FOR DISTRIBUTION / 38

Indian D2C Startups: Key Statistics D2C Market Opportunity By 2030 $300 Bn Digital First Brands In 50KIndia Funded D2C Brands In 346India No. Of Unicorns03 No. Of $4.4TotalSoonicorns08FundingBn © INC42 MEDIA NOT FOR DISTRIBUTION / 39

Packaged Food Soft Drinks Hot BeautyConsumerTissueHealthDrinks&Wellness&HygieneHealth&Personal Care India’s D2C Landscape: Key Segments Total Funded StartupsTotal250+Funding Amount $2.1 Bn FMCG 192+ Apparel & Footwear PersonalEyewear Accessories Total Funded StartupsTotal103+Funding Amount $1.5 Bn Fashion Packaged Food Soft Drinks Hot BeautyConsumerTissueHealthDrinks&Wellness&HygieneHealth&Personal Care Total Funded StartupsTotal250+Funding Amount $2.1 Bn FMCG MattressFurniture $56319+ Mn Home Decor Home ElectronicsAppliances Total Funded StartupsTotal6+ Funding Amount $139 Mn Consumer Electronics Note: Funding is for the period 2014-H1 2022 © INC42 MEDIA NOT FOR DISTRIBUTION / 40

Evolution Of D2C In India Emergence Of Pure-Play D2C (Only Own Website)Online Omnichannel D2C (Presence On Own Website Marketplaces)& Offline(PresenceOmnichannelEcommerceOnOwnWebsite,Marketplace&RetailStores) © INC42 MEDIA NOT FOR DISTRIBUTION / 41

Indian D2C Total Addressable Market Opportunity Is Poised To Cross $302 Bn By 2030 The country’s D2C market is estimated to grow at a CAGR of 24% during 2021-2030 Note: F stands for Forecasted value Source: Inc42 Bn)$(InMarketAddressableD2C 400.0300.0200.0100.00.0 2021 2022F 2023F 2024F 2025F 2026F 2027F 2028F 2029F 2030F © INC42 MEDIA NOT FOR DISTRIBUTION / 42

FMCG$2.1 Bn Total RaisedFunding 192 Number Of Unique Funded Startups ~400% YoY Surge In Total Funding In Q2 2022 276 Total CountDeal The Online FMCG Market Is Poised To Cross $21 Bn By 2025 Key Trends Subscription & Personalisation models Natural & Toxic-Free Product Offering Tech-enabled buying experience Transparency in product offering Attractive & Wide Product Portfolio Bn$InMarketAddressable 25.020.015.010.05.00.0 2015 2016 2017 2018 2019 2020 2021F 2022F 2023F 2024F 2025F © INC42 MEDIA NOT FOR DISTRIBUTION / 43

Fashion$1.5 Bn Total RaisedFunding 103 Number Of Unique Funded Startups 70% YoY Surge In Total Funding In Q2 2022 180 Total CountDeal The Online Fashion Market Is Poised To Cross $43 Bn By 2025 Key Trends Celebrity inspired or endorsed D2C brands Customized Offering Tech enabled and advanced products Quirky & Fashionable DesignsBn$InMarketAddressable 50.040.030.020.010.00.0 2015 2016 2017 2018 2019 2020 2021F 2022F 2023F 2024F 2025F © INC42 MEDIA NOT FOR DISTRIBUTION / 46

Fashion D2C Brands Landscape Western Wear Ethnic AccessoriesFootwearInnerwearActivewearEyewearWear © INC42 MEDIA NOT FOR DISTRIBUTION / 47

Home$563DecorMn Total RaisedFunding 19 Number Of Unique Funded Startups 195% YoY Surge In Total Funding In Q2 2022 44 Total CountDeal The Online Home Decor Market Is Poised To Cross $5.4 Bn By 2025 Key Trends Focus On Sustainability Wider Product Offerings Increased Demand Due To WFH Flexibility More Focus On Health Based & Ergonomic PreferencesBn$InPotentialMarket 6.04.02.00.0 2015 2016 2017 2018 2019 2020 2021F 2022F 2023F 2024F 2025F © INC42 MEDIA NOT FOR DISTRIBUTION / 48

Home Decor D2C Brands Landscape Home Decor © INC42 MEDIA NOT FOR DISTRIBUTION / 49

Consumer Electronics $139 Mn Total RaisedFunding 06 Number Of Unique Funded Startups 12 Total Deal Count The Online Consumer Electronics Is Poised To Cross $31 Bn By 2025 Key Trends Increased Affordability Of Devices Appealing Aesthetics & Design Increased Health Awareness Varied Used Cases Rising Demand In Tier 2 & More Markets Bn$InMarketAddressable 50.040.030.020.010.00.0 2015 2016 2017 2018 2019 2020 2021F 2022F 2023F 2024F 2025F © INC42 MEDIA NOT FOR DISTRIBUTION / 50

Consumer Electronics D2C Brands Landscape Consumer Electronics © INC42 MEDIA NOT FOR DISTRIBUTION / 51

D2C Startups Continue To Bag Investor Interest, $1.3 Bn Raised In H1 2022 Bn)$(InAmountFunding CountDeal1.51.00.50.0 200150100500 2014 2015 2016 2017 2018 2019 2020 2021 H1 2022 Funding Amount (In $ Bn) Deal Count Note: The funding data in 2022 is only considered till 30th June, 2022 Source: Inc42 © INC42 MEDIA NOT FOR DISTRIBUTION / 52

Funding For D2C Brands Recorded 10% Decline In Q2 2022 Compared To Q1 2022 Bn)$(InAmountFunding CountDeal0.80.60.40.20.0 806040200 Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 Q2-2022 Funding Amount (In $ Bn) Deal Count Source: Inc42 © INC42 MEDIA NOT FOR DISTRIBUTION / 53

$15 Mn Average Ticket Size Of D2C Funding In Q2 2022 The average ticket size for D2C startups grew by 12.3% in Q2 2022 as compared to previous quarter Mn)$(InSizeTicketAverage Q1-201820.015.010.05.00.0 Q2-2018 Q3-2018 Q4-2018 Q1-2019 Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q2-2020 Q3-2020 Q4-2020 Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 Q2-2022 Source: Inc42 © INC42 MEDIA NOT FOR DISTRIBUTION / 54

Average Ticket Size For D2C Brands Grew By 12.3% In Q2 2022 Compared To Q1 2022 Mn)$(InSizeTicketAverage 20.015.010.05.00.0Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 Q2-2022 Source: Inc42 © INC42 MEDIA NOT FOR DISTRIBUTION / 55

Fashion 56.6% Around 195% Growth In D2C Funding In Q2 2022 Compared To Q2 2021 FMCG turned out to be the most-funded D2C sub-sector in Q2 2022 Others 3.3% Consumer Electronics 4.8% FMCG 35.3% $202 Mn D2C Funding In Q2 2021 $597 Mn D2C Funding In Q2 2022 Others 2.7% Home Decor 5.0% Fashion 32.5% FMCG 59.7% Source: Inc42 Note: Others includes funding raised by startups in home and lifestyle, kitchenware, handicrafts, plants, bakery and more categories. © INC42 MEDIA NOT FOR DISTRIBUTION / 56

Growth Stage Saw The Highest YoY Surge For D2C Startups In India +219% (Growth Stage) +204% (Late Stage) +92% (Bridge Funding) +119% (Seed Stage) Source: Inc42 Mn)$(InAmountFunding 600.0400.0200.00.0 Q2 2021 Q2 2022 Bridge Funding Seed Stage Growth Stage Late Stage © INC42 MEDIA NOT FOR DISTRIBUTION / 57

Only Bridge Stage D2C Startups Saw Positive Growth In Q2 2022 Compared To Q1 2022 Bridge Funding Seed Stage Growth Stage Late Stage +101% (Bridge Funding) -10% (Late Stage) -20% (Growth Stage) -27% (Seed Stage) Source: Inc42 Mn)$(InAmountFunding 800.0600.0400.0200.00.0 Q4-2021 Q1-2022 Q2-2022 © INC42 MEDIA NOT FOR DISTRIBUTION / 58

Late Stage Saw The Highest YoY Surge In Deal Count For D2C Startups In India CountDeal 6040200 Q2 2019 Q2 2020 Q2 2021 Q2 2022 Bridge Funding Seed Stage Growth Stage Late Stage +150% (Late Stage) +46% (Seed Stage) +40% (Growth Stage) Source: Inc42 © INC42 MEDIA NOT FOR DISTRIBUTION / 59

D2C Brands Witnessed Drastic Decline In Seed Funding In Q2 2022 CountDeal 806040200 Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 Q2-2022 Bridge Funding Seed Stage Growth Stage Late Stage -7% (Growth Stage) -20% (Bridge Funding) -42% (Seed Stage) © INC42 MEDIA NOT FOR DISTRIBUTION / 60

30 Early Stage Indian D2C Startups Making Waves It is a D2C women apparel brand Allegra Fashion Bootstrapped SUBSECTOR N/A 2021 TOTAL FUNDING FOUNDING YEAR DelhiHQ NCR NOTABLE INVESTORS It is a D2C peanut butter brand Alpino Health Foods FMCG RBF SUBSECTOR $0.65 Mn 2016 TOTAL FUNDING FOUNDING YEAR SuratHQ NOTABLE INVESTORS It is a Babycare marketplace BabyAmore Fashion Get Vantage, Velocity, Klub SUBSECTOR Undisclosed 2019 TOTAL FUNDING FOUNDING YEAR ChennaiHQ NOTABLE INVESTORS It is a D2C feminine hygiene brand Avni Dr C Srirani, Nimish Parekh, WeFounders Circle $0.6 Mn 2021 TOTAL FUNDING FOUNDING YEAR MumbaiHQ NOTABLE INVESTORS SUBSECTORFMCG © INC42 MEDIA NOT FOR DISTRIBUTION / 62

It is a D2C cocktail mixers brand Bartisans FMCG RPSG Capital Ventures, Iluminar Media Private Limited SUBSECTOR Undisclosed 2020 TOTAL FUNDING FOUNDING YEAR MumbaiHQ NOTABLE INVESTORS It is a D2C artisnal coffee brand Bombay Island Coffee FMCG Bootstrapped SUBSECTOR Undisclosed 2018 TOTAL FUNDING FOUNDING YEAR MumbaiHQ NOTABLE INVESTORS It is a D2C bluetooth speaker brand Deciwood Consumer Electronics Let's Venture, Ankit Kedia,Sunil Kamath, Rohit Raj, Arun Gupta, Neeraj Saxena SUBSECTOR $0.25 Mn 2018 TOTAL FUNDING FOUNDING YEAR DelhiHQ NCR NOTABLE INVESTORS It is a D2C ready to cook curry pastes CURRYiT RPSG Capital Ventures, IIMU Incubation Centre, Others $0.14 Mn 2020 TOTAL FUNDING FOUNDING YEAR DelhiHQ NCR NOTABLE INVESTORS SUBSECTORFMCG © INC42 MEDIA NOT FOR DISTRIBUTION / 63

It is a D2C wellness startup Fitspire FMCG Sukhbir Singh, Startup Buddy, Sheel Oils, Sesa Oils SUBSECTOR $1 Mn 2020 TOTAL FUNDING FOUNDING YEAR DelhiHQ NCR NOTABLE INVESTORS It is a D2C home workout and connected wear brand Flexnest Consumer Electronics Bootstrapped SUBSECTOR N/A 2021 TOTAL FUNDING FOUNDING YEAR DelhiHQ NCR NOTABLE INVESTORS It is a D2C health & wellness brand Lauriko FMCG Undisclosed SUBSECTOR $0.4 Mn 2021 TOTAL FUNDING FOUNDING YEAR HyderabadHQ NOTABLE INVESTORS It is a D2C made-to-order staples brand Floryo 3one4 Capital, Vivek Gupta, Abhay Hanjura, Kunal Shah, Aman Gupta, Varun Alagh, Rishi Vasudev, Vijay Arisetti, Sameer Mehta, Alteria Capital $2 Mn 2022 TOTAL FUNDING FOUNDING YEAR BengaluruHQ NOTABLE INVESTORS SUBSECTORFMCG © INC42 MEDIA NOT FOR DISTRIBUTION / 64

It is a D2C menstrual hygiene brand Lemme Be FMCG Wami Capital, Multiply Ventures SUBSECTOR $2.5 Mn 2020 TOTAL FUNDING FOUNDING YEAR HyderabadHQ NOTABLE INVESTORS It is a D2C semi permanent hair color brand Paradyes FMCG Bootstrapped SUBSECTOR N/A 2020 TOTAL FUNDING FOUNDING YEAR AhmedabadHQ NOTABLE INVESTORS It is a D2C packaged protein foods Plow Foods FMCG Undisclosed SUBSECTOR Undisclosed 2021 TOTAL FUNDING FOUNDING YEAR DelhiHQ NCR NOTABLE INVESTORS It is a D2C petcare brand Pawrulz Bootstrapped N/A 2019 TOTAL FUNDING FOUNDING YEAR DelhiHQ NCR NOTABLE INVESTORS SUBSECTORFMCG © INC42 MEDIA NOT FOR DISTRIBUTION / 65

It is a D2C women's westernwear brand Qua Fashion Bootstrapped SUBSECTOR N/A 2019 TOTAL FUNDING FOUNDING YEAR DelhiHQ NCR NOTABLE INVESTORS It is a D2C ready to drink beverages Raskik FMCG Fluid VC SUBSECTOR Undisclosed 2019 TOTAL FUNDING FOUNDING YEAR DelhiHQ NCR NOTABLE INVESTORS It is a D2C artisnal coffee marketplace Something's Brewing FMCG Bootstrapped SUBSECTOR N/A 2020 TOTAL FUNDING FOUNDING YEAR BengaluruHQ NOTABLE INVESTORS It is a D2C men's apparel brand Snitch Undisclosed Undisclosed 2018 TOTAL FUNDING FOUNDING YEAR BengaluruHQ NOTABLE SUBSECTORFashionINVESTORS © INC42 MEDIA NOT FOR DISTRIBUTION / 66

It is a D2C ready-to-eat spices, condiments, sauces and chutneys brand Spice Story FMCG VCATS, Agility Partners, Lets Venture, VLA, Angels SUBSECTOR $0.5 Mn 2019 TOTAL FUNDING FOUNDING YEAR MumbaiHQ NOTABLE INVESTORS It is a D2C personal hygiene brand SVISH On The Go FMCG LC Nueva AIF, Wami Capital SUBSECTOR $1.7 Mn 2020 TOTAL FUNDING FOUNDING YEAR DelhiHQ NCR NOTABLE INVESTORS It is a D2C home décor brand The June Shop Home Decor Vijay Subramaniam, Pratik Nahata, Sreekumar Krishnan SUBSECTOR Undisclosed 2019 TOTAL FUNDING FOUNDING YEAR KolkataHQ NOTABLE INVESTORS It is a D2C protein bread startup The Health Factory Venture Garage, Vikas Nahar, Happilo $0.25 Mn 2021 TOTAL FUNDING FOUNDING YEAR MumbaiHQ NOTABLE INVESTORS SUBSECTORFMCG © INC42 MEDIA NOT FOR DISTRIBUTION / 67

It is a D2C mulberry silk-based skin and haicare brand The Minimal Co FMCG Bootstrapped SUBSECTOR N/A 2020 TOTAL FUNDING FOUNDING YEAR DelhiHQ NCR NOTABLE INVESTORS It is a D2C modular and interchangeable gold jewellery brand Toqn Fashion Undisclosed SUBSECTOR $0.225 Mn 2019 TOTAL FUNDING FOUNDING YEAR BengaluruHQ NOTABLE INVESTORS It is a D2C gardening startup Urvann Home Decor Inflection Point Ventures SUBSECTOR $0.45 Mn 2021 TOTAL FUNDING FOUNDING YEAR DelhiHQ NCR NOTABLE INVESTORS It is a D2C travel accessories brand uppercase Sixth Sense Ventures, Volorado Venture Partners $8.5 Mn 2022 TOTAL FUNDING FOUNDING YEAR MumbaiHQ NOTABLE SUBSECTORFashionINVESTORS © INC42 MEDIA NOT FOR DISTRIBUTION / 68

It is a D2C health and wellness startup What’s Up Wellness FMCG Bootstrapped SUBSECTOR N/A 2020 TOTAL FUNDING FOUNDING YEAR KolkataHQ NOTABLE INVESTORS It is a D2C everyday essentials startup Wildermart FMCG Sairee Chahal, Sreenivasan Ramakrishnan, Anand Rangaswamy, Dr Rohit Bhardwaj SUBSECTOR $3 Mn 2019 TOTAL FUNDING FOUNDING YEAR BengaluruHQ NOTABLE INVESTORS © INC42 MEDIA NOT FOR DISTRIBUTION / 69

Note: The aggregate revenue for both financial years is based on the sample set of top 35 funded D2C startups in India who had revenue over INR 20Cr in FY21 and make 80% of total venture capital inflow in Indian D2C brands to date.

WOW Skin Science witnessed the highest sales growth (FY20 & FY21) among the sample set 1 out of 4 funded D2C brands in India were operationally profitable in FY21 $157 Mn+ spent by Indian D2C brands on advertising in FY21

Financial Analysis Of Indian D2C Brands

$1.03 Bn+ in total sales clocked by Indian D2C brands in FY21 39% year-on-year increased in total sales between FY20 & FY21

$2.6 Mn median advertising budget of Indian D2C brands in FY21 $40 Mn spent on logistics by Indian D2C brands in FY21

42% year-on-year surge in aggregate logistics expenditure between FY20 & FY21 $873K median expenditure on logistics by Indian D2C brands in FY21

The aggregate revenue for both financial years is

Indian D2C Brands Sales Crossed $1 Bn Mark In FY21 Bn)($RevenueAggregate 1.251.000.750.500.250.00 FY20 FY21 Despite 2 out of every 5 Indian D2C brands recording a decrease in sales from FY20 to FY21, the combined revenues of these brands showed a 39% YoY surge in revenue from sales +39% YoY Surge Source: Inc42 Calculations, Company Filings

Note: based on the sample set of top 35 D2C startups in India who had revenue over INR 20Cr in FY21 and make 80% of total venture capital inflow in Indian D2C brands to

funded

date. INR to USD exchange rate is 80 © INC42 MEDIA NOT FOR DISTRIBUTION / 71

Inc42 Calculations, Company Filings

Note: The aggregate revenue for both financial years is based on the sample set of top 35 funded D2C startups in India who had revenue over INR 20Cr in FY21 and make 80% of total venture capital inflow in Indian D2C brands to date. USD exchange rate is

Indian D2C Brands Which Recorded The Highest Annual Growth In Sales Between FY20 & FY21 YoY Sales Surge (In x times) GrowthSalesHighestWithBrandsD2C10:Top WOW Skin BombayVahdamMamaearthScienceMinimalistLiciousTeasDaMENSCHHappiloboAtShavingCompanyWakefit 0.00 5.00 10.00 15.00 20.00

INR to

80 © INC42 MEDIA NOT FOR DISTRIBUTION / 72

Source:

Top three Indian D2C brands which witnessed the highest YoY sales growth between FY20 & ‘21 are from the beauty & personal care segment.

Top 10 Indian D2C Brands With The Highest Sales Growth Between FY20 & ‘21 Sales (FY20)Company Name $0.8 Mn $14 $25$2$88$7$1.1$4$16$0.8MnMnMnMnMnMnMnMnMn Sales (FY21) $12 Mn $58 Mn $3 $51$5$189$17$3$10$53MnMnMnMnMnMnMnMn YoY2.1x2.1x2.2x2.4x2.5x2.6x3.2x3.4x4x15.4xSurge Source: Inc42 Calculations, Company Filings Note: The aggregate revenue for both financial years is based on the sample set of top 35 funded D2C startups in India who have revenue over INR 20Cr in FY21. INR to USD exchange rate is 80 © INC42 MEDIA NOT FOR DISTRIBUTION / 73

Only 1 Out 4 Funded D2C Brands In India Are Operationally Profitable Loss Making 74.3% Profitable Operationally 25.7% The supply and consumer demand shock infused by the pandemic in FY22 & '23, clubbed with growing competition. We expect more Indian D2C brands to close their annual accounts in loss for the financial year 2022 Top Indian D2C Brands Source: Inc42 Calculations, Company Filings Note: The aggregate revenue for both financial years is based on the sample set of top 35 funded D2C startups in India who had revenue over INR 20Cr in FY21 and make 80% of total venture capital inflow in Indian D2C brands to date. INR to USD exchange rate is 80 © INC42 MEDIA NOT FOR DISTRIBUTION / 74

Note:

Source: Inc42 Calculations, Company Filings The aggregate revenue for both financial years is based on the sample set of top 35 funded D2C startups in India who had revenue over INR 20Cr in FY21 and make 80% of total venture capital inflow in Indian D2C brands to date. INR to USD exchange rate is 80

The median advertising budget for a top funded D2C brand in India was $2.6 Mn in FY21. Unchanged on YoY basis compared to the previous year.

+12% YoY Surge

$157 Mn Spent By Indian D2C Brands On Advertising In FY21 ExpenditureAdvertisingAggregate 200150100500 FY20 FY21

Indian D2C Brands With Highest Market Spends Sales (FY20)Company Name $5.7 Mn $6.4 Mn $14 Mn $21 Mn $14 $0.3$2.6$9.2$4.6$6.2MnMnMnMnMnMn Sales (FY21) $22 Mn $18 Mn $16 Mn $13 $5.5$5.5$5.8$7.0$8.2$8.9MnMnMnMnMnMnMn YoY17.52.1-37%1.51.3-36%-39%1.1x2.9x3.9xSurge Source: Inc42 Calculations, Company Filings Note: The aggregate revenue for both financial years is based on the sample set of top 35 funded D2C startups in India who have revenue over INR 20Cr in FY21. INR to USD exchange rate is 80 © INC42 MEDIA NOT FOR DISTRIBUTION / 77

Note:

Indian D2C Founder Survey, 2022 50% D2C brands in India have an omnichannel presence Brands Awareness the most significant challenge for D2C brands in India 63% Indian D2C brands leverage influencer marketing Up to 20% marketing budget allocation on social media influencers in FY23 Instagram the preferred social media platform for engagement and conversions 75% D2C brands in India prefer third-party logistics 66% D2C brands in India do not sell their products overseas Shiprocket the most popular choice for logistics

The above-mentioned insights are based on survey analysis of 50 Indian D2C brands © INC42 MEDIA NOT FOR DISTRIBUTION / 78

50% Indian D2C Brands Have Omnichannel Presence No 21.1% Planning on it 28.9% Yes 50.0%BrandsIndianD2C Source: Inc42’s Indian D2C Founder Survey 2022 Note: This analysis is based on the survey of 50 D2C brands in India Questions asked: Do you have an omnichannel presence (both online and offline)? 87% of Indian D2C brands give high importance to having an omnichannel (online + presence.offline) © INC42 MEDIA NOT FOR DISTRIBUTION / 79

Source:

Inc42’s Indian D2C Founder Survey 2022 Note: This analysis is based on the survey of 50 D2C brands in India Questions asked: Which of the following do you believe is the most significant challenge for India's D2C ecosystem? Number of respondents Brand awareness (marketing) Commision of third-partymarketplacedigital Growing LogisticsCustomercompetitionretentionpartnerintegrationProductdistributionManufacturing/Production 0% 10% 20% 30% 40% Growing competition, presence of legacy brands and rising CAC, can hinder the marketing effectiveness of Indian D2C brands © INC42 MEDIA NOT FOR DISTRIBUTION / 80

Brand Awareness Is The Most Significant Challenge For D2C Brands In India

More Than 60% D2C Brands In India Leverage Influencer Marketing No 36.8% Yes 63.2% BrandsIndianD2C In FY23, Indian D2C brands plan on spending approximately 5% to 20% of their annual marketing budget on social influencersmedia Source: Inc42’s Indian D2C Founder Survey 2022 Note: This analysis is based on the survey of 50 D2C brands in India Questions asked: Do you leverage influencer marketing? © INC42 MEDIA NOT FOR DISTRIBUTION / 81

Indian D2C Brands Expected To Spend Up To 20% Of Their Marketing Budget On Social Media Influencers In FY23 84% of Indian D2C brands plan on allocating up to 20% of their annual marketing budget on social media influencers this financial year Source: Inc42’s Indian D2C Founder Survey 2022 Note: This analysis is based on the survey of 50 D2C brands in India Questions asked: What percentage of your marketing budget will be spent on influencer marketing in FY23? Number of respondents 5% to 20% Less than 5% 21% to 30% More than 30%0% 10% 20% 30% 40% 50% © INC42 MEDIA NOT FOR DISTRIBUTION / 82

Source: based on of social

the following

Inc42’s Indian D2C Founder Survey 2022 Note: This analysis is

Backed by the growing number of influencers and popularity of “reels” in India. Instagram can be termed as the most popular and effective social media platform for D2C brands.

Instagram A Clear Winner In Terms Of Both Social Media Engagement & Conversions

the survey of 50 D2C brands in India Questions asked: Which

media platform generates the most engagement for you? & Which of the following social media platform generates the most conversions for you? InstagramYouTubeFacebookOthers 0 20 40 60 80 Best Enagament Best Conversions

Majority Of Indian D2C Brands Prefer To Sell On More Than Five Online Ecommerce Marketplace Source: Inc42’s Indian D2C Founder Survey 2022 Note: This analysis is based on the survey of 50 D2C brands in India Question asked: How many online marketplaces do you sell on? % number of respondents marketplaceofNumber 5-8 More thanNone1-3104-59-10 0% 10% 20% 30% © INC42 MEDIA NOT FOR DISTRIBUTION / 84

Amazon Is The Most Preferred Ecommerce Marketplace By Indian D2C Brands BrandsIndianD2C Source: Inc42’s Indian D2C Founder Survey 2022 Note: This analysis is based on the survey of 50 D2C brands in India Question asked: Which of these is your favourite ecommerce marketplace? 52% of Indian D2C brands sell their products on more than fiveplatformsecommerce Others 13.3% Myntra 13.3% Flipkart 16.7% Amazon India 56.7% © INC42 MEDIA NOT FOR DISTRIBUTION / 85

Shiprocket Is The Most Preferred Logistics Partner For Indian D2C Brands Shiprocket is also the latest logistics startup to attain unicorn status in August 2022 Source: Inc42’s Indian D2C Founder Survey 2022 Note: This analysis is based on the survey of 50 D2C brands in India Question asked: Which among these is your preferred logistics partner? Preferred Logistics Partner ShiprocketBluedartDelhiveryPickrrOthers 0% 10% 20% 30% © INC42 MEDIA NOT FOR DISTRIBUTION / 86

More Than 75% D2C Brands In India Prefer To Have Third-Party Logistics BrandsIndianD2C Source: Inc42’s Indian D2C Founder Survey 2022 Note: This analysis is based on the survey of 50 D2C brands in India Question asked: How do you manage your logistics? Outsourced 76.3% Inhouse Logistics 23.7% © INC42 MEDIA NOT FOR DISTRIBUTION / 87

Inc42’s Indian D2C Founder Survey 2022 Note: This analysis is based on the survey of 50 D2C brands in India Questions asked: On a scale of 1 to 10 rate the importance of expanding overseas for modern D2C brands in IndiaNumber of respondents 10)to(1scaleonoverseassellingofImportance High Impact (6 to 10) Moderate (5) Low Impact (0 to 4)0% 20% 40% 60% 80% © INC42 MEDIA NOT FOR DISTRIBUTION / 88

Source:

Indian D2C Brands Are Bullish On Selling Their Products Overseas

34.2% 65.8% Two-Third D2C Brands In India Do Not Sell Their Product Overseas Source: Inc42’s Indian D2C Founder Survey 2022 Note: This analysis is based on the survey of 50 D2C brands in India Questions asked: Do you sell your products overseas? Yes No BrandsIndianD2C © INC42 MEDIA NOT FOR DISTRIBUTION / 89

High Customer Acquisition Cost

Given the crowded space, customers have shifted to product loyalty than brand loyalty resulting in reduced lifetime value of a customer and high churn rate

High marketing costs results in costly customer acquisition

High commission charged by ecommerce marketplaces & high dependence on ecommerce platform for brand visibility makes it a compulsion to be present on it

High competition from legacy players since they have strong distribution network and are easily accessible especially in semi-urban and rural areas.

High Competition From Legacy Players & Marketplaces

Connectivity issues in tier-2 & tier-3 cities due to poor infrastructure

Low Customer Retention & Loyalty

Key Challenges For D2C Brands In India

Difficulty In Managing Logistics

High RTO (return-to-origin) rate in case of COD (cash-on-delivery)

Difficulty in dealing with multiple third-party delivery partners

Difficult to match price range & discounts offered by marketplaces

Rise Of Visual Search

Integration Of Metaverse For Sales

Focus On Sustainability

Growing Popularity Of Live Commerce

With the rise in awareness among consumers, D2C brands have also started focusing on environmentally-friendly practices, from green packaging to more eco-friendly shipping methods.

Live Commerce is a new trend where brands or influencers hired by them do live streams, placing commercial products front-and-center. For instance, Walmart-backed Flipkart and Meesho also embraced live commerce this year.

Tech-savvy internet users have been using image searches to buy anything that they like by uploading images on ecommerce platforms and getting products similar to the images uploaded by them.

Homegrown consumer electronic brand Leaf Studios is planning to make a launch in metaverse. When consumers make physical purchases of the brand’s headphones, the firm will also drop the NFT (Non-fungible token) in their metamask wallets which will help them unlock the same headphone in metaverse.

Ecommerce: Emerging Trends In India

ONDC prepares to launch in September 2022 and reach 100 cities by the end of the year. Currently, ten platforms including Reliance owned Grab, Paytm, Digit, PhonePe, eSamudaay, Go Frugal, Dunzo and Loadshare are a part of the open Microsoftnetwork.has become the first big tech company to join ONDC Confederation of All India Traders (CAIT), a representative body of 70 Mn+ small retailers, is likely to join the government-backed ONDC by the end of SoftBank2022.and Sequoia India has advised their portfolio startups in India to join ONDC. OYO, Zomato and Swiggy are likely to join the network and are in various stages of integration. National Restaurant Association of India (NRAI) plans to onboard its restaurants to the network.

Updates From ONDC Universe

Provides for integrating Customs, RBI and India Post systems to improve tracking of imports through e-Commerce. All ecommerce websites and applications available for downloading in India must have a registered business entity in India as the importer on record or the entity through which all sales in India are transacted.

Issued by DPIIT in February 2019, center is once again deliberating on the draft guidelines and pkan to launch it soon in the public domain.

The overall objective of this Policy is to prepare and enable stakeholders to fully benefit from the opportunities that would arise from progressive digitalization of the domestic digital economy.

Draft Ecommerce Policy: Key Features

Scope and objectives are defined under 6 heads including data, infrastructure development, ecommerce marketplaces, regulatory issues, stimulating the domestic digital economy and export promotion through ecommerce Aims to regulate cross-border data flow, while enabling sharing of anonymised community data (data collected by IoT devices installed in public spaces like traffic signals or automated entry gates)

Development of data-storage facilities/infrastructure to facilitate last mile connectivity across urban and rural India

Recognising the inter-disciplinary Draft Page 8 of 41 nature of ecommerce, the Standing Group of Secretaries on e-Commerce (SGoS) is recognised as the mainmechanism to tackle inter-departmental issues effectively. Proposes removal of application fee for claiming export benefits for Indian domestic Aimsmanufacturers/MSMEs/start-ups/sellers/retailerstoclearlydemarcatewhatconstitutesamarketplace model and what comprises an inventory-based model of sale and distribution.

Ecommerce entities are required to publicly share all relevant details of sellers who make their products available on websites/platforms of these entities. All the sellers/retailers are required to furnish an undertaking of genuineness of products to the platforms and the same must be made accessible to consumers by the platforms

Inc42 Media, 59/16, 4th Floor, Jujhar Tower, RD Marg, Kalkaji, New Delhi, Delhi 110019

C r edit s

www.inc42.com Contact: editor@inc42.com Inc42 is India’s largest tech media & information platform on a mission to build & serve India’s tech, startup & internet economy. From breaking the latest news to discovering the hottest startups, from spotting upcoming trends to simplifying complex concepts, we cover everything tech in India’s internet economy.

Born in January 2015, Inc42 has become the leading source for news & analysis on India’s rapidly growing tech, startup & internet economy. Inc42, with over 30,000+ published stories, 60+ research reports, 100+ conferences & events & having featured 1000s of entrepreneurs, now reaches over 25 Mn+ tech leaders & professionals every month.

Meha Agarwal

ANALYST Sabith DESIGN & INFOGRAPHICS

ADDRESS

EDITOR Mihir Malhotra, Sandeep Singh, Vaishnavi Dayalani

Disclaimer

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