After Amazon, Flipkart, Reliance and Tata Neu, India’s $133 billion e-commerce market may be too little for a fifth player


  • According to a report, the Indian e-commerce space may soon run out of space to house even more players if another major player tries to make a listing.
  • Bernstein has maintained that the Indian e-commerce sector would not be a “winner take all” opportunity.
  • The four largest players in the segment are Amazon, Flipkart, Reliance and Tata Digital.

Every major Indian company is chasing the ecommerce space, which is expected to have half a billion users by the end of this decade. Be it Amazon, Flipkart, Reliance JioMart or Tata Digital’s latest super app Tata Neu, everyone has left no stone unturned to dominate customer demand and the mindspace.

Now, a new report from JM Financial has revealed that we will soon run out of space to house any more players. The Indian financial services firm noted that the entry of another major player into the already “crowded” e-commerce space could instead lead to further consolidation, hurting smaller players trying to impress.

“Smaller ‘me-too’ players are likely to lose. Furthermore, we see these big players continue their hunt for specialist e-commerce players to fill their portfolio gaps and thus maintain their leadership position. In addition, we could see that they e-commerce, allowing businesses, e.g., logistics, data analytics, etc., to support organic growth,” the report added.

Meanwhile, Bernstein has maintained that Indian ecommerce would not be a “winner take all” opportunity due to low ecommerce penetration across categories and customer segmentation. The privately held wealth management firm noted that e-commerce is the largest segment of the internet in India and is expected to more than fivefold to $133 billion by 2025.

Tata Neu could eat Amazon, Flipkart and Reliance’s share

Tata Digital’s super app Tata Neu — bringing all its digital services and apps on one platform — is the latest to join the fray. While none of the brands or banners launched under the super app are new, consolidating them all under one banner has given the company an edge, especially when it comes to product personalization.

JP Financial noted that Tata Neu sells nearly 95% of its total e-tailing segments ranging from electronics to apparel to footwear and groceries through brands such as Westside, Tata CLIQ, Croma and BigBasket. The platform also offers airline tickets, jewelry and would add more product lines or brands in the near future. Revenue of $20 billion is expected by the end of this decade.

Source: Media Reports, Jefferies, Bernstein
*Data is based on Bernstein analysis
**Tata Neu has announced that it has registered 2.2 million downloads in the first week of its April 2022 launch.

Tata Neu is well positioned to take market share away from its existing competitors such as Flipkart, Amazon, Reliance Retail, the report added. Reliance Industries had launched JioMart in 2019 to sell groceries online, the platform mainly competed with BigBasket (now owned by Tata) and Zomato-backed Grofers (now called Blinkit).

The Mukesh Ambani-led company later decided to expand JioMart’s offerings to include clothing, accessories, homewares, and more to give Amazon and Flipkart tough competition.


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