5 Notable Indian E-commerce Startups To Watch Out In 2024
The Indian e-commerce ecosystem is on a rapid growth trajectory, expected to reach a gross merchandise value of $350 billion by 2030. The market is growing at a compound annual growth rate (CAGR) of 27%, with projections to hit $163 billion by 2026.
A significant driver of this growth is the increasing penetration of internet and smartphones, coupled with a rising number of online shoppers, which is expected to grow from 622 million in 2020 to 900 million by 2025.
This growth is also fueled by substantial investments, including major moves by global players like Facebook’s investment in Reliance Jio. The sector’s expansion is notably prominent in Tier-2 and Tier-3 cities, which are becoming increasingly significant in the e-commerce landscape.
Udaan: Innovating B2B E-Commerce
Udaan is a dynamic B2B e-commerce platform that has been reshaping the supply chain in India since its inception in 2016. It connects small and medium-sized enterprises (SMEs) with wholesalers and manufacturers, providing them with a platform to trade a variety of products efficiently and transparently.
Udaan focuses on empowering businesses, particularly in tier-2 and tier-3 cities, by offering them access to a wider market and competitive pricing. The founders of Udaan, Amod Malviya, Sujeet Kumar, and Vaibhav Gupta, are former Flipkart executives whose vision was to fill the gap in the traditional B2B market by leveraging technology.
Udaan has made significant strides in a short period, becoming one of the fastest-growing startups in India. It has expanded its operations to cover over 900 cities, serving millions of buyers and sellers.
The startup has attracted considerable investment due to its innovative business model and rapid growth. It has raised over $1.15 billion from several high-profile investors, including major rounds led by companies like Tencent, Altimeter Capital, and DST Global.
Meesho: Revolutionizing E-commerce with Social Selling
Meesho operates as a social commerce platform that has significantly transformed the e-commerce landscape by enabling a direct-to-consumer model. It empowers resellers, who often include homemakers and small business owners, to sell products using social media platforms like WhatsApp and Facebook.
This innovative model allows resellers to start their businesses with zero investment, handling logistics and payment operations through the platform, thus simplifying the e-commerce process for micro-entrepreneurs across India. Founded by Vidit Aatrey and Sanjeev Barnwal, both graduates of IIT Delhi, Meesho started as a fashion app startup before pivoting to a broader social commerce model.
Meesho has made a notable impact on the social commerce sector, facilitating the growth of over 13 million entrepreneurs, the majority of whom are women. This empowerment has led to a significant increase in financial independence among women in India. Meesho’s focus on tier-2 and tier-3 cities has also expanded the reach of e-commerce to previously underserved regions, creating a more inclusive market
The company has raised around $1.1 billion over various funding rounds, achieving a valuation close to $5 billion by 2021. Meesho’s innovative model has attracted investments from high-profile backers such as Facebook (now Meta Platforms), Y Combinator, Sequoia Capital, and SoftBank Vision Fund, among others.
Zepto: Pioneering Quick Commerce in India
Zepto is a quick commerce startup specializing in delivering groceries and essentials within 10 minutes. Founded by Aadit Palicha and Kaivalya Vohra, Stanford dropouts, Zepto operates through a network of dark stores strategically located to ensure rapid delivery times. The startup focuses on major Indian cities, optimizing its supply chain and logistics to meet the demand for instant delivery.
Aadit Palicha and Kaivalya Vohra, both young visionaries who left Stanford to pursue their entrepreneurial dreams, co-founded Zepto. Their journey from creating a ride-hailing app for school kids to establishing one of India’s quickest grocery delivery services illustrates their innovative and adaptive approach to business.
The company achieved unicorn status rapidly, becoming a notable player among startups in 2023 despite a challenging economic climate. Their operational model has allowed them to scale quickly, reaching an annualized revenue of over $700 million with plans to hit $1 billion soon
Zepto has raised substantial funding, totaling about $560 million, with a significant $200 million round in 2023 that catapulted it to a unicorn with a valuation of $1.4 billion. Investors include prominent names like StepStone Group and Goodwater Capital, demonstrating strong confidence in Zepto’s business model and growth trajectory
Livspace: Redefining Home Interiors and Renovation
Livspace operates as an omnichannel home interior and renovation platform, providing end-to-end solutions from design to installation. It integrates a vast array of furniture and décor products from over 500 brands through a commission-based model.
The platform also facilitates connections between homeowners and a network of over 20,000 professional designers and contractors to ensure seamless project execution. By leveraging its proprietary 3D visualization software, Canvas, Livspace ensures accuracy in design and pricing, enhancing customer satisfaction.
Founded by Anuj Srivastava and Ramakant Sharma, Livspace has made a significant impact by simplifying the traditionally fragmented process of home renovation. Since its inception, Livspace has served over 100,000 homeowners across India, Singapore, and Malaysia.
Despite some customer service challenges, Livspace maintains a high Net Promoter Score (NPS), reflecting strong customer satisfaction. Livspace has attracted substantial investment, raising over $500 million across multiple funding rounds. Key investors include TPG Growth, Goldman Sachs, and the Ingka Group (part of IKEA).
Purplle: Transforming Beauty E-commerce in India
Purplle is a direct-to-consumer beauty and personal care platform, offering a wide range of cosmetics, skincare, and haircare products through its online portal. The company differentiates itself by catering mainly to women in Tier 2 cities and beyond. This focus helps bridge the accessibility gap in the beauty market.
The startup was founded by Manish Taneja and Rahul Dash in 2011. Their vision was to make beauty products more accessible and affordable across India. Purplle has shown remarkable growth, expanding its product range to include over 1,000 brands and 25,000 products.
The company has reached over 18,000 pin codes across India and now operates several physical retail locations alongside its online platform. Their private label brands like Good Vibes and NYBae contribute significantly to their revenue, emphasizing Purplle’s impact on the beauty sector in India.
Purplle has successfully raised substantial funding, totaling around $180 million. Their funding rounds have attracted significant investment from major players like Goldman Sachs, Sequoia Capital India, and Verlinvest, supporting their ongoing expansion and innovation in the beauty market.
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