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Digital classifieds industry revenue may touch Rs 7,900 crore by 2020

The current revenue stands at Rs 2,900 crore (FY15). According to the report, the next phase of growth is expected to be driven by e-services, real estate and automobiles

By: | New Delhi | Published: September 22, 2016 6:27 AM

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The digital classifieds industry, which currently has players like JustDial, OLX and Quikr, is expected to reach Rs 7,700-Rs 7,900 crore in revenue by FY 2020, according to a joint report titled ‘Digital Classifieds in India 2020’ by KPMG in India and Google.

The current revenue stands at R2,900 crore (FY15). According to the report, the next phase of growth is expected to be driven by e-services, real-estate and automobiles.

“Spurred by the smartphone penetration, online users are expected to grow to a whopping 650 million by 2020; and with every second consumer willing to pay for value added services,” said Nitin Bawankule, industry director, Google India.

Currently, classified sites, either earn from advertising, or through premium listings.

For example, a business-to-consumer classified site, earns Rs 5,000-Rs 7,000 per month from each listing, while a consumer-to-consumer site earns more than 70% of its revenue from advertisements. Under the C2C model, an advertiser pays Rs 200-500 based on display of an ad and sub-categories.

“For the next level of growth, classifieds companies will be required to provide holistic services. For example, post selling a flat on its site, a real-estate website, can forward the information of the sale to an e-services site which could then provide details of home renovators.

The real-estate site can at the same time forward the details to an online furniture site, which can contact the buyer. This way the real-estate site earns commission for forwarding sales lead and further gets a share of a revenue if the sites are able to sell their services,” says Sreedhar Prasad, partner, e-commerce and start-up, KPMG India.

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