Meesho is the fastest-growing platform, while Flipkart leads the e-commerce market with a 48% share, according to Bernstein

According to a recent AllianceBernstein research, Softbank-backed Meesho has become the fastest-growing e-commerce platform in terms of user base in India, while Flipkart, a company of the Walmart group, continues to lead the e-commerce industry with a 48% market share. Flipkart’s user base increased by 21% year over year (YoY), Meesho by 32%, and Amazon by 13%. The research attributes Amazon’s lower user growth to its more pricier offers as compared to its counterparts.

Flipkart led the market as of FY23, with a 48% share of the Indian eCommerce market. Flipkart’s growth is still outpacing that of the sector. With a 50/30 split, Flipkart’s biggest categories will be clothing and mobile devices. In the online smartphone and online fashion markets, Flipkart is predicted to have a 48% and 60% market share, respectively, according to the research. Meesho’s market share has increased, according to the research, mainly because of its strategic emphasis on Tier 2 and smaller cities, which is made possible by its mass positioning and zero-commission business model.

“Over the past year, Meesho has experienced a YoY growth in order volume of 43%, accompanied by a 54% increase in revenue due to healthy take rates and an 80% rate of repeat business,” the statement said. According to the survey, over 95% of the selection on Meesho’s platform is unbranded, and approximately 80% of the sellers are proprietors of retail businesses.

According to the survey, Meesho, with an average of 120 million monthly active users (MAUs), is the fastest-growing e-commerce platform in India. AllianceBernstein study shows that the present GMV (gross merchandise value) run rate of the Meesho company is above USD 5 billion, with around 50% coming from garments, 8%–10% coming from BPC (beauty and personal care), and 8%–10% coming from the home and kitchen.

According to the research, “We expect Meesho to be the key gainer with over 48% downloads in Indian eCommerce and gain incremental market share.” According to a September Nielsen Media survey commissioned by Amazon India, the respondents across India ranked Amazon India as their top online brand.

The Flipkart Group company Myntra continues to maintain the largest market share in terms of active users with over 50% share. Reliance-owned Ajio has been gaining customers and presently owns around 30% market share based on MAUs in the fashion e-commerce space. “Myntra had the greatest growth rate among its peers in December 2023, at 25%. According to the research, a deeper examination of the company indicates that app users are not transacting as much as in the past. Myntra’s GMV increased by only 12% in FY 23 compared to 35% in FY22.

Because of the market’s maturity, Blinkit is the e-grocery company that is expanding the quickest. Zepto, which launched in April 2021, is less comprehensive and offers fewer products than Blinkit, according to the research.

According to industry talks, rapid commerce has three players in India: Blinkit, which leads the market with a nearly 40% share, Instamart, which has a 37–39% share, and Zepto, which holds a about 20% share from a gross metropolitan product standpoint.