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71 Per Cent of E-Commerce Orders Originate From Non Metro Cities: Shiprocket’s Report on MSMEs

The report states that India’s e-commerce and MSME market has a $300 billion future

E-commerce enablement platform Shiprocket, which is bound for an IPO by the next year organised ‘Shiprocket Shivir’, an e-commerce conclave in New Delhi on Friday. 

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CEO and managing director Saahil Goel launched a report on India’s MSMEs journey and the current developments named “How MSMEs of Bharat Sell Online” 

The report noted that although urban hubs are fueling ecommerce activity, around 71 per cent of orders come from the non-metro areas. The report also underscores a growing trend of MSMEs utilizing WhatsApp for direct marketing, with usage increasing from 25 per cent to 30 per cent. Additionally, advanced technology solutions, such as marketing automation tools, are being employed to optimize campaigns, personalize customer interactions, and improve efficiency. 

The report also highlighted various statistics according to various regions in India. Northern India has seen a rise in orders, with its share growing from 26 per cent in 2021 to 29 per cent in 2023. Meanwhile, the Western region has remained stable, and Southern India has experienced a decrease from 27 per cent to 25 per cent, suggesting potential shifts in regional demand dynamics. 

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It also states that the MSME led e-commerce sector in India is poised to become a $300 billion industry with 20.5 per cent of women led companies, generating 19 per cent employment.  

Talking on the sidelines of the event, chief financial officer, Tanmay Kumar told Outlook Business that as the company gears up for the IPO, it is providing a platform to thousands of MSMEs to showcase their work through ‘Shiprocket Shivir’.  

On the developments of the company, he stated that the company hasn’t been filed the IPO yet but is preparing for it processes ahead. He added that an internal fundraising is happening within the company, with the existing investors. He did not disclose the amount.  

For the 2022-23 fiscal year, Shiprocket reported an operating revenue of Rs 1,089 crore, marking an increase of nearly 78% from the previous year. The company aims to achieve $1 billion in revenue by the year 2028. 

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Currently, the fourth largest e-commerce platform in India, the company claims a GMV of Rs 25,000 crores and approximately 100,000 merchants. 

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