Rediffusion’s ICYMI report goes into detail about the D2C Opportunities in Tier II and beyond Markets. The report reveals that there has been upwards of $33 Bn funding in E-commerce startups since 2014, Tier II & beyond Markets present $240 Bn+ opportunities by the year 2030, and much more.

1. Unlocking D2C Opportunities in Tier II & Beyond Markets
Q3 2023
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In Case You Missed It (ICYMI) www.icymi.in is Rediffusion’s aggregated news platform that reshares the latest information and developments from the world of technology, business and brands.

2. Introduction
Inc42 Media has released the State of Indian e-Commerce Report Q3 2023. It is a comprehensive
research piece that highlights all domains of the e-commerce market in India, from key players in the
ecosystem, to growth drivers and funding trends.
In a nutshell, here are the key statistics from the report:
Ecommerce Market Opportunity By 2030
Indian Ecommerce Industry Will Be Driven
By The Fashion Segment In 2030
Total Funding In Ecommerce Startups From
2014 To H1 2023
Funded Ecommerce Startups In India
$400 Bn $33 Bn+
28% 1K+

3. e-Commerce Ecosystem in India

4. A significant chapter in the report is the section on
D2C opportunities in Tier II markets and beyond.
This ICYMI report will cover the key highlights from the data.

5. Tier II & Beyond Cities To Present A $240 Bn+
Ecommerce Opportunity By 2030

6. Online Shopping Boom: Tier II & Beyond Cities
Lead The Way

7. MSMEs In India — A Geographic Distribution

8. MSMEs In India — A Geographic Distribution

9. MSMEs In India — A Geographic Distribution

10. MSMEs In India — A Geographic Distribution

11. Unlocking The Future: Why Tier II and Beyond
Cities Hold The Key For D2C Brands
Untapped Market Potential in Smaller Cities
The markets in Tier II cities and beyond are still largely driven by traditional brick-and-mortar commerce, offering
fertile ground for online expansion.
The Ripple Effect of Rising Disposable Income
The nation's economic growth has led to an increase in disposable incomes for the middle class across the country,
in turn fueling higher consumption rates.
Limited Modern Retail Options Fuel Ecommerce Growth
E-commerce platforms have stepped in where modern physical retail could not. They offer a diverse range of
products and brands, granting consumers access to previously unavailable goods.
A Surge in Internet User Base Expands Market Reach
The internet user base in these towns is expanding rapidly. More people are joining social media platforms and
engaging online, creating a fertile landscape for e-commerce companies to target.

12. Half of India's Registered Startups Sprout Beyond
Metropolitan Zones

13. D2C Startups From Emerging Hubs

14. F&B Emerges As The Hottest Segment For Tier II &
Beyond Expansion

15. Pet Care Category Emerged As The Most Funded
D2C Category In Tier II & Cities

16. Top Funded D2C Brands In Tier II & Beyond Cities

17. The Districts With Untapped D2C Opportunities In India

18. The Reason For Funding Gap for Startups In Tier II
Cities and Beyond
Limited Investor Presence In Smaller Cities
Venture capitalists, angel investors, and other funding sources are generally more abundant in metro cities, and
therefore prefer investing in startups within close proximity for easier monitoring and support.
Fewer Networking Opportunities
Big cities provide a rich ecosystem for startups to connect with potential investors, mentors, and industry experts. In
contrast, such networking opportunities are less frequent in Tier II cities.
Risk Perception Affects Investment
Investors may see startups in Tier II cities as riskier investments due to challenges like limited access to skilled talent,
infrastructure issues, and smaller market reach.
Regulatory Hurdles
Startups in Tier II cities may face compliance and business regulation challenges that can deter investment. Metro
cities, in contrast, have more familiar regulatory landscapes for investors.

19. Source :
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