Experiencing a rapid growth, the Indian fashion ecommerce landscape is projected to grow at a CAGR of 25 per cent, exceeding $112 billion by 2030-end. According to Inc42’s latest ‘State Of Indian Ecommerce, Q1 2024 report, over 200 fashion ecommerce startups have collectively amassed over $2.2 billion in funding between 2018 and 2023, with Delhi NCR emerging as the fashion capital, raising over $1.4 billion in 60+ deals, surpassing Mumbai and Bengaluru.
The report highlights the increasing frequency of wardrobe upgrades among Indians, particularly in Tier II cities and beyond. Women’s apparel and accessories are expected to dominate, capturing 50 per cent of the market share by 2030, presenting a $56 billion opportunity. Men’s and kids’ segments follow closely, accounting for 29 per cent and 21 per cent of the market share, respectively.
D2C fashion brands have secured 93 per cent of the total investments. LensKart leads with $1.3 billion, alongside notable names like Bewakoof, BlueStone, Melorra, and XYXX. Late-stage startups attracted 80 per cent of the total funding, indicating significant investor interest in the sector.
AI integration is reshaping the Indian ecommerce landscape, with startups employing AI for personalised recommendations and leveraging machine learning algorithms. Meesho uses AI-powered chatbots to manage inquiries, while Myntra’s 'My Stylist' provides personalised fashion recommendations, enhancing the shopping experience.
Despite facing funding challenges, the sector continues to thrive, fueled by D2C startups and innovative technologies like generative AI. This technological advancement is crucial for the industry's growth, projected to reach over $400 billion by 2030.
