New-age consumer tech cos to dominate $300B online spend by 2030: Elevation Capital report

Online consumer spending by Indians is estimated to double from $140 billion currently to $300 billion by 2030, with the market share poised to be grabbed by the new-age consumer tech companies, according to a report.

Leading early-stage venture capital firm Elevation Capital in its report What If…We Win? Unlocking The India Consumer Tech Opportunity noted there are enough tailwinds to indicate that a new class of consumers is emerging.

The report highlighted areas that consumer tech companies could target, including value creation opportunities arising out of emerging monetisation models for new media platforms, building businesses catering to India’s affluent, new-age consumer brands targeting discretionary needs, and offline-dominant consumer categories.

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As an example, the report noted that India's top 2% of the population offers a $100 billion opportunity. The top five million households allocate approximately $40 billion annually towards discretionary expenditures. Over the next decade, this spending pool will expand to $100 billion as their incomes grow, it said.

The spends by this category of consumers will be premium and spread across segments like real estate, leisure travel, healthcare, and pet care.

In a joint statement, Elevation Capital's Co-Managing Partner Mukul Arora and Partner Mayank Khanduja, who leads Elevation’s Consumer Tech investments, said, “Of late, India’s startup ecosystem has started questioning the viability of delivering new high-quality businesses in the consumer tech space."

"With all our conviction, we say yes, these businesses can be built. This is not just because we have partnered with multiple category winners in the past consumer tech waves but because all markers today strengthen our conviction,” they said in a statement.

Elevation Capital believes new-age consumer brands will create $50 billion of listed market capitalisation by 2030. The report noted that deepening ecommerce penetration, lowering cost barriers and internet access before discretionary income are enablers that are now converging to make brand-building both lucrative and exciting for entrepreneurs.

Elevation Capital strongly believes that many massive marketplaces are waiting to be built and it is a misconception that there are no whitespaces left. A major axis where there is room for builders to disrupt would be complex categories that conventional online marketplaces have not adequately served, the report noted.