UBS forecasts India's online market tops $200B in 5 years
India's online market is on track to more than double in the next five years, jumping from around $80 billion to $85 billion today to over $200 billion, according to UBS.
Growth from tier-2 cities is increasingly contributing to the expansion, as the market is expanding beyond the largest cities.
The sector is already growing much faster than the overall economy, about 25% to 30% a year.
India's quick commerce grows 40%-45% yearly
A big part of this surge comes from quick commerce (15- to 20-minute delivery from a nearby dark store), which is expanding at an impressive 40% to 45% each year and now makes up about a quarter of online business.
UBS says that as the market matures, profit margins in the broader online market could reach 3% to 5%, creating a potential $6 billion to $10 billion profit pool if growth stays steady.