Redseer Strategy Consultants said on Thursday that India's e-tailing has achieved USD 60 billion GMV in FY2023 with a consistent 22% yearly increase demonstrating outstanding performance on most criteria.

After the pandemic, e-commerce, which grew rapidly during COVID-19, has been gradually losing steam. Redseer claims that the industry is in a great position when considering a variety of other crucial criteria and that the growth rate is still solid.

Despite slower annual growth of 22% in FY23, e-commerce is now 2.5 times as large as it was before COVID, and the customer base is maturing. According to the company, 31% of yearly customers are now also monthly customers, a significant increase from 23% in FY21.

The partner at Redseer, Mrigank Gutgutia, stated that "despite losing momentum, e-tailing today is 2.5x of pre-COVID levels and is performing much better than overall retail consumption, which has been tepid in recent quarters due to inflation concerns."

With fashion becoming the largest online category with 27% GMV share, it was claimed that the maturing user base was generating 1.2x better monetization as a result of the changed category mix.

With 210 million customers annually in FY23, advertisements monetisation contributed USD 1.2 billion in income for Indian e-tailers and was growing at 37% year-on-year, it added. This will continue to fuel robust growth in the future.

Despite recent increases in competition, Flipkart Group has remained resilient and kept its market share at 48% in FY23. Additionally, according to Redseer study, Flipkart Group is growing significantly 1.6x faster than the industry in JFM23 quarters.

Regarding trends, Redseer said that the growth pattern in FY23 (and probably moving forward as well) is unusual because there are more "regular shoppers," or monthly users, than ever before. The monthly shopper base (MTU), which was 65 million in FY23, now accounts for 31% of the annual e-tailing shopper base, up from just 23% prior to the pandemic.

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