The Indian consumer tech industry’s total addressable market will reach $300 billion by 2027, growing at a CAGR of around 25 per cent. This was revealed in the first instalment of ‘Cracking the Code: Unveiling India’s Consumer Landscape,’ a three-part annual report series by Chiratae Ventures, in collaboration with 1Lattice and powered by Google. 

The report combines secondary research and primary surveys conducted with respondents nationwide. It delves into trends within the consumer tech industry and provides in-depth analyses of gaming, e-commerce, fintech, entertainment, and healthcare sectors.

India’s Consumer Potential

The unlocking of India's consumer potential is driven by digital public infrastructure and population-scale solutions. Over 500 million Indians now seek entertainment and gaming services on a daily basis, over 1.2 billion need good healthcare, and around 1.1 billion people have a bank account and seek to invest in financial services. 

880 million people in India aspire to spend on fashion and apparel, and 220 million aspire to spend on on-demand services. This has resulted in an increased focus on personalisation, a rise in experiential retail and a growing influence of social media. 

Supported by an increase in disposable income and significant digital adoption, they provided additional tailwinds to solve the above needs. Emerging trends such as social commerce, immersive shopping experiences, and mobile gaming are reshaping the global consumer landscape, impacting regions including the US, Europe, APAC, and MENA. 

Not to be left behind, the Indian consumer tech sector is experiencing the swift rise of over-the-top (OTT) services on the subscription side, increasing involvement of women in gaming, commerce and social media, and a notable rise in green mobility solutions such as EV sales.

The current Total Addressable Market (TAM) of the industry is valued at ~$100 billion, with the dominant sector being mobility (30 per cent share of the market), which includes ride-hailing apps, automobile marketplace and online car rental market, followed by entertainment (25 per cent) which includes print, digital, and television media. By 2027, fashion is expected to overtake entertainment as the second leading sector with apparel and accessories, beauty and personal care, footwear, jewellery, and watches.

Sudhir Sethi, founder and chairman of Chiratae Ventures projects the Indian consumer industry to be $300 billion revenue by 2027. “We have till date invested ~$450 million into the sector. Key winners backed by Chiratae include Flipkart, Myntra, Cult.fit, Firstcry, Lenskart, GlobalBees, Policybazaar, PlaySimple, Curefoods, Fibe, Rentomojo to name a few. We believe that consumer tech sector is both a horizontal and a vertical play with winners at the intersections of horizontal technology disruption and vertical domains such as health, finance, education, agriculture etc,” he said. He added that the company would continue to invest in companies like Agrostar, Healthifyme, Miko, Artium, and a new breed of consumer deeptech companies such as KBCols, Aether as well.  

Digital today is ubiquitous and its usefulness is increasing every day.  With a plethora of information, services, and options now available to people at their fingertips, consumers are looking for personalised digital experiences. 

“These consumer expectations extend to tier two consumers who have embraced technology and have an even greater openness to experimentation with new brands and products, and the willingness to spend on personalization and premiumization. The rapid evolution of AI presents an incredible opportunity for businesses to engage with their consumers in newer, more meaningful ways that deliver effective purchase outcomes whilst also responding to their need for privacy," added Roma Datta Chobey, managing director of digital first businesses, Google India

Decoding The Indian Consumer 

Growing digital adoption in India has led to increased smartphone usage, higher digital spending, and a rapidly scaling shift from offline to online. India’s lower-income and tier II and III cities are rapidly adopting digital technology and are aware of the various platforms/apps. 

As per the survey findings, consumers, on average, dedicate over four hours daily to their smartphones. The fintech apps dominate usage, with 77 per cent of respondents leveraging it, primarily due to robust security features and a user-friendly interface. Following closely, entertainment apps capture a significant share at 70 per cent, with on-demand services being perceived as essential expenses in the daily lives of about 70 per cent of consumers.

Gaming, e-commerce, and healthtech are also gaining traction among Indian digital consumers. Online and professional gaming is on the rise in India, with an increasing number of active female gamers (~60 per cent). The growth of the e-commerce sector is seen due to the shift from offline to online channels for apparel and groceries because of the discounts and offers available. Lastly, health tech is growing at a CAGR of around 40%, with online pharmacy being the most used platform in metro and Tier I cities.

Roma Dixit, director of financial services at 1Lattice, said that the report emphasises five pillars in consumer tech—population scale, product innovation, digital infrastructure, vertical integration, and omnichannel presence. “With a current market worth $100 billion and an expected surge to $300 billion by 2027 (CAGR 25 per cent), India's consumer tech isn't a fleeting but a substantial force. This growth potential is underscored by the ambitions of Indian homegrown startups, driven by robust revenue growth and eyeing global expansion, fuelled by an ever-growing digital native user base,” she added.