Indian consumer tech to touch $300 bn by 2027

BENGALURU: The Indian consumer tech sector is poised to touch $300 billion by 2027, growing at a CAGR of 25%, showed a report from VC firm Chiratae Ventures, in collaboration with decision-support company 1Lattice and Google. The report combines primary surveys and secondary research conducted across the country.
The total addressable market (TAM) of the consumer tech sector is valued at $100 billion, with mobility (30% share) as the dominant sector that includes ride-hailing apps, automobile marketplace and online car rental marketplaces followed by entertainment (25%) that comprises print, digital, and television media.The report said that by 2027, fashion is expected to surpass entertainment as the second-leading sector.
Expanding digital public infrastructure has led to 500 million Indians availing entertainment & gaming services daily, additionally, 220 million Indians are looking to spend on on-demand services, it said.
Sudhir Sethi, founder and chairman of Chiratae Ventures, said, “We believe that the consumer tech sector is both a horizontal and a vertical play with winners at the intersections of horizontal technology disruption and vertical domains such as health, finance, education and agriculture,” he said. Till date, Chiratae has invested $450 million into the sector. Its portfolio includes Firstcry, Lenskart, GlobalBees, Policybazaar, PlaySimple and Curefoods among others.
“Digital today is ubiquitous and its usefulness is increasing every day. With a plethora of information, services, and options now available to people at their fingertips, consumers are looking for personalized digital experiences. These consumer expectations extend to tier-2 consumers who have embraced technology and have an even greater openness to experimentation with new brands and products, and the willingness to spend on personalization and premiumization,” said Roma Datta Chobey, MD – Digital First Businesses in Google India.