Kanpur Stock：To what extent has India's digital economy developed？How does it affect the Indian stock market？

Source: Snowball APP, Author: Fan Fan Ai Yangji, (

When many bloggers (including me) were written in the Indian market, most of them only wrote around conventional angles such as population, macroeconomic growth, and international relations.

Everyone knows very little about the development of India's Internet and even technology ~~

I specifically found a research report "India 2023" jointly released by three institutions from, Bain and Temasek at the end of 2023.(Three institutions division of labor: Google mainly provides various online data, Temasek as an investment company mainly provides investment perspectives and market perspectives on the Indian market, Bain as a consulting company as a consulting company's final modeling and analysis)

This report is 103 pages, and it is still in English. The style of painting inside is like this:

So, I used Kimi Chat to read the document efficiently.

Finally, with the help of Kimi Chat, I read this document, understood the core content, and understood with my own understanding, summarized the latest progress and future expectations of India in the "" field.

Although this document exceeds 100 pages, I understand that the core content after reading is the following three parts:

1> Future expectations for India

2> User end: Growth potential is mainly in India's "T2+" crowd

3> Products: India enters the Internet entrepreneurial boom

Let's take a look at the contents of these three parts in turn.1. The overall development trend of the Indian digital economy

1Kanpur Stock. India is experiencing the fundamental change of the income structure

I simply compiled the RMB amount corresponding to the annual income level of India's family (about 3 people in India):

The changes in India's income structure are mainly reflected in two aspects:

① India's "high -high income+high -income" family proportion: will increase from 38%in 2022 to 56%in 2030.

② India's per capita GDP will also rise from $ 2,500 in 2022 to $ 5,500 in 2030, which is doubled.2. In 2030, the Indian digital economy is expected to reach $ 1 trillion

The current scale of India (2023) is about $ 35 billion, and Bain predicts that it will increase to $ 1 trillion by 2030.That is: 7 years over 28 times.

So what is the current scale in my country?

According to the data of the Ministry of Industry and Information Technology, the scale of my country reached 5.02 trillion yuan in 2022, and the total volume ranked second in the world (5.02 trillion yuan, about nearly 7 trillion US dollars).

Simple understanding, in 2022, the scale of my country reached $ 7 trillion!India, which is quite populated in my country, is only $ 35 billion, which is 200 times different!

Even though the two countries have a difference in the definition of the "/Internet economy", from the perspective of grasping blur, we can really feel the huge gap between the two countries in the field of Internet development.

From an opportunity, this huge gap is "expected".

The next report explains the possibility of reaching a scale of 1 trillion yuan from the perspectives of "user/consumer" and "product/enterprise".2. India's "T2+" crowd has huge digital service consumption potential

1. Indian population pattern:

According to the 2011 Indian population census definition (not right, the latest official census data is in 2011Indore Investment. India has a census every 10 years. The new round of census was originally conducted in 2021. However):

India divides the city into 4 levels according to the "population":

Metro: greater than 4 million population

Level first (T1): 1 million-4 million

Grade II (T2): 250,000-1 million

Level 3 and above (T3+): less than 250,000 population

The "T2+" area introduced in detail in this report includes "cities with a population between 250,000 and 1 million" and "cities and rural areas with a population of less than 250,000."2. Digital service consumption potential group: T2+

The number of "T2+" crowd accounts for 86%of India's total population and is considered to be a region with greater growth potential. They play an important role in Indian's data economy and consumption growth.

The report mentioned that this group of people is increasingly inclined to enjoy services and consumption on the Internet.

If we use it in China, I understand should be "sinking market".Because India's urbanization rate is not high, the sinking market is even greater.

According to the report, people in the metropolis and T1 areas say that people in T2+areas have the following characteristics in "Internet behavior":

① The Internet time is longer (people in the metropolis are 4 hours per day, T1 cities are 4.25 hours per day, T2 is 4.5 hours)

② The per capita expenditure in digital services is even higher than those in metropolis (for example: the monthly moving average online shopping amount is 1 times that of metropolis people, and online medical expenditures are 1.3 times that of metropolitan people)

③ Trust more local V bloggers in India, and prefer "Indian manufacturing" products, which gives more development opportunities in Indian local companies.3. Digitalization has provided targeted services for T2+in 3 areas

According to the report (data as of May 2023, Bain analysis), professional digital solutions have affected in three areas (education, medical care, agriculture).

3. Indian Internet unicorn number in the world third third

1. India enters the era of "mass entrepreneurship, innovation"

After I read the report, I found that the word "mass entrepreneurship and innovation" is quite suitable for the current India.

In the past few years, the number of registered entrepreneurial companies in India has shown explosive growth.

As shown in the figure below, starting from 2021, the number of new startup companies has reached 20,000, a year -on -year increase of 43%.

These new startups also create a lot of employment for India every year:

2. India's development of talents and facilities for the development of the Internet

India's Internet and even technology want to develop, and they are naturally inseparable from talent and policy support.This is also mentioned in the report.

Talent training: In recent years, India has more than 1.5 million Internet -related engineers in India to join Indian startups each year, which is currently the most new talent in the world.At present, it is also increasing training and attracting more higher -level talents (big data, cloud computing, AI, the Internet of Things, etc.).

Policy support: Establish the National Science and Technology Entrepreneurship Development Commission (NSTEDB), the Biotechnology Industry Research Aid Committee (BIRAC) to provide support for funding;The launch of incentive policies such as the incubation and Development Plan (TIDE) of science and technology entrepreneurs.3. India's unicorn companies are second only to the United States and India

The report said: India has 108 unicorn companies. In 2022, it became the third largest unicorn enterprise center in the world, second only to the United States and India.

When I first saw this data, I was shocked!Intersection

In our minds, India is more of the image of "dirty mess". Who can think that such a country has incubated hundreds of unicorn companies?Intersection

For this reason, I also asked Kimi:

Let's see if the above 10 Indian heads of mutual unicorn companies are familiar with the segment of its segment ~~

Can you see the shadow of the development of the Indian Internet?4. India's head Internet unicorn enterprise, most of them have not yet been listed

Out of curiosity, I went to dig out the listing of 10 Internet unicorn companies in India myself, and then found that most of the Indian Internet leaders have not yet been listed.

From this point of view, as Indian Internet and technology leading companies have been listed one after another, will the Indian stock market have a wave of "Internet and even big technology" in the future?5Guoabong Wealth Management. Indian Internet companies are facing financing difficulties

The report also pointed out that in recent years, with the higher interest rates, the cost of funds has risen, and the economic weakness has been superimposed. Therefore, the willingness of venture capital institutions to pay for money is decreasing.

Because in such an environment, venture capital institutions are increasingly focusing on the profitability of the enterprises.

However, we all know that in the early stage of development and even the competitive period of market size, Internet companies are burning money and it is difficult to make profit.

The report also gave a survey of venture capital institutions. 77%of investors who were investigated believed that Indian Internet companies were currently higher.Or I understand is the "high valuation" we often say.

Why do you think it is expensive?

A large part of the reason is that it is either "not worth" (I understand that it lacks profitability and other development opportunities), or "no money".

Maybe this is why, the stock price has fallen by 74%since its listing in 2021.

BYIU (India Online Education Platform) was valued at $ 22 billion in 2022, but now the valuation is about $ 200 million.

An investor at OLA (Indian Internet Car Platform) also greatly reduced the valuation of the company to $ 1.9 billion, a 74%decrease from 2021, but no reason was given.

Therefore, I was thinking that these Internet giants in India have been postponing the listing plan in the past two years, which may also be related to the current financing environment.

Although the financing environment of the first -level market is not good, the funds in the secondary market in India are very good, and a large number of Indian middle -class retail investors run into the market.Udabur Wealth Management

According to the Indian State Stock Exchange data: From November 2023-January 2024, 58 million new investors were registered on the Indian National Stock Exchange, and 33 million people in the same period last year.Final summary

After reading the report and related information, my first feeling is "there is danger in the machine and organic in crisis", so you should still be cautious.

1. First of all, when I saw that the number of Internet unicorn companies incubated by India had ranked third in the world, the shock to me was the biggest.Then when most of them were not listed, my first feeling was more about the future Internet speculation opportunities in the Indian stock market.

However, I lamented that the global economy was weak, and the venture capital institutions did not dare to invest money, resulting in a poor living environment of a large number of startups.Kolkata Stocks

2. In the past two years, the stock market in India has risen. The core is that India ’s large number of middle -class families run into the market.

According to the data published in the article published in March this year: there is also an indicator that measures the "Indian Stock Trading Account" from 41 million to 140 million from 2019 to 2023.(At present, the number of shareholders in my country is in the early 200 million)

At the high position of the stock market, in a short time, the problem of so many new shareholders and new funds in running and entering the market is that many novices who have not experienced losses may feel heartache because of the subsequent adjustment of the decline, so that they will never return to the stock market again.The loss is great.Essence

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