Digital technologies to generate $1 trillion value by 2025, says EY

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Published: October 15, 2019 3:23:58 AM

Earlier this year, Gurgaon-based logistics firm Delhivery secured $413 million funding from SoftBank Vision Fund (SVF) valuing it at over $1 billion.

India e commerce, online shopping, EY, Rival Rivigo, BigBasket, e commerce sector, shop onlineThe country, whose internet user base is next only to China, is estimated to touch 627 million internet users by the end of this year, analysts at EY said.

India’s e-commerce and consumer internet sectors are expected to reach $200 billion by 2027 and digital technologies are estimated to generate $1 trillion in economic value by 2025, says consulting firm EY.

The country, whose internet user base is next only to China, is estimated to touch 627 million internet users by the end of this year, analysts at EY said.

The sector attracted over $7 billion in funding from private equity and venture capital firms (including venture debt) across nearly 200 deals in 2018, adding seven companies to the unicorn club, the firm said in a statement.
“So far, 2019 has already seen five companies achieve the unicorn status as the sector enjoys investor and consumer confidence,” analysts said.

Earlier this year, Gurgaon-based logistics firm Delhivery secured $413 million funding from SoftBank Vision Fund (SVF) valuing it at over $1 billion.

Recently, the company also raised $115 million from Canada Pension Plan Investment Board (CPPIB).

Rival Rivigo, that operates on a relay-trucking model, also attained the unicorn status this year.

In July, Ola’s electric mobility unit turned unicorn post SoftBank Group’s $250 million investment in the firm. E-grocer BigBasket too reached an estimated valuation of $2.28 billion with about $150 million funding led by South Korea’s Mirae Asset-Naver Asia Growth Fund.

“The e-commerce and consumer internet companies are bringing unique solutions through innovation and technology across sectors such as mobility, healthcare, logistics, gaming and education which have together raised $1 billion in investment capital,” analysts said. Notable in the education sector is Byju’s that clinched a fresh $150 million funding earlier this year, reaching a valuation of over $5.5 billion.

Internet penetration currently being at a mere 36%, there is a huge window for growth, they added. EY expects rural internet users to increase by 2.5 times, in comparison to the urban internet users.

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