India’s online consumer expenditure, forecasted to more than double from $140 billion to $300 billion by 2030, according to report by venture capital firm Elevation Capital.

Against the backdrop of a thriving Indian start-up ecosystem and a promising economic outlook, with GDP per capita expected to soar to $5,200 by 2031, the report titled “What If…We Win?

The report also highlighted that India’s top 2 per cent, or roughly 5 million households, will increase their pool of discretionary expenditures from $40 billion currently to $100 billion over the coming decade. The top 5 million households, constituting approximately 2 per cent of the population, allocate approximately $40 billion annually towards discretionary expenditures. Over the next decade, this spending pool will expand to $100 billion as their incomes grow, the report noted.

Key categories

Pet care, leisure travel, personal care, quick service restaurants (QSRs), apparel, durables are the key categories that will create winners in the consumer tech and brand space.

“Our consumer tech portfolio and 100+ consumer tech founders we meet every month show that the market is only getting deeper. With more disposable income in the hands of the consumer, a large share of the new revenue and profit pools would accrue to the consumer tech companies,” said Mukul Arora, Co-managing Partner and Mayank Khanduja, Partner, who leads Elevation’s Consumer Tech investments.

New consumer brands are booming with the rise of direct-to-consumer (D2C) strategies. The combined revenue of new-age consumer brands tracked by Elevation has crossed $5 billion. Deepening e-commerce 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. As a consequence of the above, Elevation sees $50 billion of public market cap to be contributed by new-age brands in discretionary categories by 2030, it noted.

With a track record of early investments in successful ventures such as Swiggy, Unacademy and MakeMyTrip, Elevation Capital remains bullish on India’s consumer market. The firm has recently intensified its focus on consumer tech, with 14 investments made in the past 18 months.