Internet and e-commerce boom in India, raised $15.4 billion capital in 2022: Report – Times of India

The internet and e-commerce sectors in India are growing according to Ernst & Young (EY) and PeerCapital’s ‘E-commerce and Consumer Internet Trendbook 2023’.
The report claims that the Indian consumer internet sector raised $15.4 billion private equity/venture capital funds across over 500 deals in 2022. Additionally, the online shopping sector received $22 billion in investments, which is the second highest in the world.
Internet sector is on the rise for the next few years
The report also highlights consumer behaviour after the pandemic as a factor behind internet and e-commerce sectors becoming the fastest-growing in the country. EY Private partner KT Chandy said, “E-commerce and consumer internet sector in India has been on a growth spree in the last few years, emerging as the second largest online shopper base globally. The growth momentum is expected to continue, driven by improved digital infrastructure, rise in customer base and robust government initiatives.”
Looking into the near future, Chandy added, “Going forward into 2023, businesses are expected to embrace innovative methods of customer acquisition, while focusing on cash creation and profitability.”

Status quo in internet sector and prediction for this year
Another partner, Surabhi Marwah noted that 2023 was set to witness an increased focus on growing internet sector business in tier-2 and tier-3 cities. She said, “The year 2023 is going to see an increased focus on tier-2 and 3 cities to drive the exponential growth of internet businesses. Channels such as social commerce have helped brands build a trusted and loyal customer base in these important markets that will further propel the growth trajectory of the Indian e-commerce and consumer internet sectors.”

PeerCapital managing partner Ankur Pahwa underlined the status quo in the Indian internet sector. He mentioned, “As the financial stack goes global and our health stack expands by the day, India’s future holds massive innovation in supply chain digitisation, influencer-led social commerce, synchronization of healthcare data, and tech infusion in agriculture and clean energy.”
“We are confident that the e-commerce and consumer internet sector is going to be the largest value-creator, employer, and contributor to India’s GDP and a catalyst to the ambitious vision of India@100!,” Pahwa added.