Consumer demand and sentiment across India’s e-commerce segment are at their strongest since the pandemic, according to Kapil Thirani, senior director of Flipkart‘s marketplace and head of Shopsy. He said demand is being fuelled by a mix of government policy changes and rising disposable incomes in lower-affluent households.
The demand is being fuelled by developments such as changes in the income tax slabs and targeted GST rate cuts on mass-market categories such as soaps and kajal. “Structurally, people will now have more money in their hands, and product prices are also coming down. The multiplier effect will drive more purchases from the same consumer base,” he said in an interaction with FE.
Shopsy’s growth and category trends
Shopsy, Flipkart’s hyper-value platform launched in 2021, competes with players such as Meesho and Amazon Bazaar. It typically sells products priced between Rs 150-250. The app has been downloaded nearly 450 million times to date and attracts more than 50 million monthly active users. Over 70% of its shoppers come from tier-2 and smaller cities, with women driving the bulk of purchases in categories such as fashion, home decor, and general merchandise.
Fashion continues to dominate the platform, accounting for nearly half of unit sales, Thirani said, while home decor is a fast-growing category, aided by aspirational spending among tier-2 households. “We are seeing consumers invest more in bed sheets, curtains, and even niche items like fridge organisers and plant containers,” Thirani noted. Social media content and influencer-led discovery are also nudging shoppers towards new product categories.
Regional supply chains and seller expansion
On the supply side, Flipkart’s overall 1.4 million sellers typically offer premium products on Flipkart’s main platform and lower-priced products on Shopsy. The company is also building regional supply chains by tapping manufacturing hubs such as Shantipur in West Bengal for saris, Khurja in Uttar Pradesh for ceramics, and Kannauj for perfumes.
While Shopsy does not disclose gross merchandise value, Thirani said transacting sellers on the platform have grown 30% over the past six months, and GMV has been expanding 30-40% annually. Unit economics, he added, are already positive, though EBITDA-level profitability is yet to come.
As the festive season sale kicks off across e-commerce platforms, Shopsy is betting that rising affordability and regional supply depth will help it capture the next 200-300 million e-commerce users in India. “We want Shopsy to be the entry point for first-time online shoppers,” Thirani said.