Digital Marketplaces Are Expected To Reach $350 Billion In GMV By 2027: Report According to the report, B2B ecommerce was the leader in terms of deal volumes in 2022, which grew 31 per cent compared to 2018
By Teena Jose •
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
According to a report released by Bain & Co, jointly with Accel, digital marketplaces are projected to see their enterprise value more than double or triple and their contribution to gross domestic product to go up from 2-3 per cent currently to 5 per cent by 2027. To elaborate, the digital marketplaces are expected to reach $350 billion in GMV by 2027.
The report titled, 'The Rise of Digital Bazaars in India,' is co-authored by consulting firm Bain & Company and venture capital firm Accel.
"Today, marketplaces in India are ubiquitous across every major business category, contributing more than $100 billion in gross merchandise value (GMV); delivering heightened convenience and a plethora of choices to 200 million to 230 million online shoppers; and offering logistical and financial support to more than 6 million micro, small, and medium enterprises (MSMEs), enabling them to buy and sell goods or services online," stated the report.
It also added that the GMV of B2B marketplaces is expected to grow 5 times its current size to reach $55 billion by 2027, followed closely by online food delivery, which will almost triple in size to reach nearly $22 billion. B2C ecommerce marketplaces will continue to dominate with 40 per cent of total GMV. GMV refers to the total value of all goods sold by a retail firm during a specific period of time The report further revealed that, as of today, around 20 marketplaces have achieved more than $1 billion in GMV, and many players have turned profitable.
According to the report, B2B ecommerce was the leader in terms of deal volumes in 2022, which grew 31 per cent compared to 2018. The report also discussed the investments received by the digital marketplaces. It stated that, marketplaces have also seen significant traction with investors in recent years. 2021 was a landmark year for marketplaces, as funding reached $16 billion (growing four times compared to 2018 funding), more than 135 companies raised funding, and more than 45 companies drew Series C+ capital.
