IndiaTrends2018 Trends Shaping Digital India Internet

#IndiaTrends2018:
Trends shaping Digital India
May 2018
KPMG.com/in
Foreword by KPMG in India
The internet has gripped also allows companies to technology platforms available,
everyone’s imagination and collate customer data and the strength of data to deliver
it still continues to evolve its hence facilitates a personalised customers will be a game-
avatar in India that irrespective shopping experience to the changer. Adoption of robotics
of the age demographic, customers. Thus, social and artificial intelligence could
there is a constant desire commerce and assisted gain clout, especially in the
to keep pace with the latest e-commerce is also gaining retail value chain. In order to
internet trends. With digital ground. augment the impact of AI and
literacy on the rise, the last robotics, collaborations and
few years have witnessed Increasing number of strategic partnerships might
significant mobile and internet e-commerce platforms clearly emerge as the next big change
penetration. Further, there has indicate that digital payments in the business landscape.
been a rise in adoption of new are on the rise. While there are
age technologies, plethora yet certain challenges such as This report aims to highlight
of digital avenues opening awareness and security with significant internet-driven
up and increasing internet respect to digital payments developments that could
enabled channels – thus in India, with time; these are impact companies operating in
‘heterogeneity’ emerging as a only expected to be addressed the digital space in the coming
key characteristic in the Indian gradually, eventually providing year. We hope you find this
internet landscape. a boost to the economy. report a useful and insightful
read.
India’s multi-lingual There is no doubt that
characteristics have brought in technology has played a
a unique diversity to the ‘Indian huge role in the ‘business-
Internet Consumer’ who may to-consumer’ (B2C) and
or may not necessarily speak the ‘business-to-business’
the dominant languages. This (B2B) transformation. Some
means that organisations organisations have managed
today will need to focus to leverage and combine the
on content that is both power of technology and
relevant and valuable to the product/service, thus
various language speakers giving a new uplift to the
for enhanced consumer traditional consumers need.
outreach and attention. We therefore are witnessing
Direct selling to consumers new sub-segments such as
can help organisations gain health-tech, agri-tech and Sreedhar Prasad
complete control over their ed-tech emerging from the Partner and Head
brand presentation and reduce business landscape. Diving Consumer Markets & Internet
distribution costs. This model into the near future, apart from Business, Advisory - KPMG in India
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a
Swiss entity. All rights reserved
Foreword by NASSCOM
Data-driven insights, digital is seen in Media, Gaming and exponential processing power,
tech and ubiquitous mobile Entertainment frequently has natural-language programming
computing is changing the now moved to other realms as and massive spike in data
Indian landscape like no other. well – Health-tech, Agri-tech, generation.
This report provides rich Ed-tech to name just a few.
insights on the top 10 trends As you turn the pages, you
that are yet unfolding in varying At the heart of this disruption will find some deep insights
degrees. is of course data. Volume ably backed by data (both
and velocity always existed. global and Indian) trends, et
According to a Forbes article, Variety (both structured and al., and I believe it would be
companies globally lose unstructured) is the new greatly beneficial in your digital
upto USD300 billion annually normal which has made it journey.
because of poor customer game-changing. Organisations
experience.1 Competitive too have been incredible in
advantage is fast becoming their ability to capture data and
competing on experience. extract value out of it with the
In India, 95 per cent of aid of emerging technologies.
households have a single According to KPMG in India’s
television, and smartphone CEO Outlook 2017, in the next
screen has become a key three years, 80 per cent of
source for streaming-on- Indian CEOs are gearing up to
demand.2 It is no wonder invest in cognitive technologies
then that by end of 2018, including Artificial Intelligence
smartphone penetration and Machine Learning.
would have risen to 530
million which is just a shade The idea of robots per se is not
below the half-way mark. Just new. For several decades, we
let it sink in – soon, half of have seen these applications
India will own smartphones particularly in manufacturing
and their expectation to and warehouse operations.
be served through this But what is new is that
medium would have gone up robotics is morphing into
disproportionately. The ‘mobile- digital labour and it has been
first’ consumption pattern that made possible due to AI,
K S Vishwanathan
Vice President
NASSCOM
1. Competing On Experience: How Retailers Can 2. TV & OTT In 2018: From Polarisation To
Stem The Amazon Effect, Forbes, 18 April 2018 Unification, MXM India, 29 December 2017
Foreword by YourStory
At YourStory, every story ecosystem is ready to talk in Things are changing at a
we publish, be it of an her/his own language. Beyond blistering pace. Next year, we
entrepreneur or an evolving entertainment, in e-commerce, could be discussing a whole
business landscape, also in financial services, in new set of technologies and
showcases a trend at some healthcare – businesses the changes are happening as
level. So, we were thrilled to that plan to expand on the we speak. Startups are making
be a part of the initiative that basis of a digital explosion this happen. More power to
tries to understand the trends need to connect with her/ them.
that are shaping India, as seen him today. She/he and her/
from the eyes of its new-age his family and friends are
entrepreneurs. As the buzz already generating terabytes of
around the trillion-dollar digital data that companies want to
economy builds up to a roar, analyse and extract value from.
India finds itself on the cusp They are already engaging
of tremendous transformation. with brands via social media;
On one hand, we are steeped commerce will follow. They are
in tradition, on the other also generating millions of data
hand we are surrounded by points on a daily basis. Which
disruption and change. Listen begs the question, who’s
carefully and you will hear the looking at protecting this data?
rumble of the rising economic And therefore, is cybersecurity
revolution. And why not? the next big opportunity? The
India is brimming with ideas, report will tell you more.
entrepreneurship, and the
thirst for change and reform. These insights would not have
been possible without the
At the centre of it all is the contributions of everyone who
digitally savvy, non-English- worked to make this report
speaking consumer, who will possible: right from those we
represent nearly three-quarters surveyed to the dedicated
of the country’s internet user efforts of everyone at Kalaari
base by 2021. The question Capital, NASSCOM and KPMG
therefore, is whether or in India.
not the rest of the digital
Shradha Sharma
Founder and CEO,
YourStory Media Pvt Ltd
Foreword by Kalaari
India over the last decade ecosystem. After a few rounds The continued success of the
has risen in significance and of discussions with YourStory, Indian ecosystem depends
is the third largest tech start- NASSCOM and KPMG in on many efforts coming
up ecosystem globally with India we conceptualised together. I am pleased that
close to a dozen unicorns #Indiatrends2018 : Trends four organisations from
being created. These start- shaping digital India - an different domain and expertise
ups have not only changed endeavor to explore trends that with unique perspectives
the lives of Indians but have are influencing India’s digital collaborated on an initiative like
played a pivotal role in laying economy and summarise #IndiaTrends and would like
the right foundations for India’s opportunities that lie ahead for to thank all the respondents
digital economy to flourish. entrepreneurs and corporations of our survey, industry leaders
As we grow to become to be future ready. As part of and everyone from YourStory,
the world’s third largest this initiative, we conducted NASSCOM and KPMG in India
economy by 2025, there will a survey across over 1200 for their support in making this
be multiple opportunities entrepreneurs to understand report comprehensive. We
and sectors where India can what they believe will hope you find it to be valuable!
leapfrog in innovation. We will fundamentally drive innovation.
undoubtedly see technology Taking this a step further, we
companies accelerate reached out to several key
this change with the next stakeholders in the ecosystem
generation of entrepreneurs to get opinions on how their
solving for uniquely Indian industries will play out going
problems and scaling them forward. The end outcome
globally. Today, India’s rapidly is a report that provides an
evolving digital landscape is in-depth analysis on how
spawning start-ups across digitization is changing India’s
sectors that are attracting commerce landscape and its
significant capital, resulting in role in creating efficiencies
innovative trends that we have across large sectors like
highlighted in this report. financial services, healthcare,
education and agriculture.
At Kalaari, we believe there Furthermore, it uncovers
is a need for stakeholders in nuances emerging from India’s
the ecosystem to develop first time smartphone users
a deeper understanding of and the impact digital will have
these transformations and as consumer growth becomes
collaborate to take a holistic more inclusive in the coming Vani Kola
view of India’s start-up years. Managing Director
Kalaari Capital
#IndiaTrends2018:
May 2018
KPMG.com/in
Table of contents
01 ‘Mobile-first’ consumption for media, gaming and 03

entertainment generating significant avenues for consumer
outreach and engagement
02 Digital future lies in the Indian language internet users 06
03 Rise of social and content-based commerce 09
04 Ecosystem creation by internet business players to increase 12

monetisation avenues
pages
05 Emergence of ‘alternate commerce’ 15
06 Emerging sectors
06a Health-tech: Leveraging technology to enhance healthcare 17
06b Agri-tech: Enabling a new green revolution 19
06c Ed-tech: ‘E-Learn India’ – Digitally innovative learning for 23

the masses
07 Emergence of Indian brands accelerated through digital 26

platforms
08 Robotics pushing boundaries 28
09 Digital payments going mainstream 30
10 Frontier-tech solutions like Artificial Intelligence (AI), Machine 33

Learning (ML) and blockchain likely to gain precedence
01 | #IndiaTrends2018: Trends shaping Digital India
Introduction
From its inception in 1990s few years. About 59 per cent internet-driven technologies,
to its adoption in our day-to- of the country’s population are able to make products
day activities, the internet has is expected to have internet affordable for consumers,
drastically changed the way access and about 2 billion create their brands in the
we communicate with one devices are expected to be global arena, analyse large
another. It has, in a matter of connected on the network datasets to serve consumers
very few years, graduated from by 2021.2 This trend, largely better and make their offerings
just being a simple platform driven by the government’s available to a large consumer
to a necessity for every push towards digital initiatives base. From healthcare to retail,
successful business around and availability and affordability almost every sector is adopting
the world. New innovations of smartphones, is expected new emerging technologies
have given us ways to harness to continue in both rural and to digitise and transform their
the power of internet and urban areas in the coming businesses.
leverage it to transform years.
businesses around the world. Technology, backed by
The internet has transformed the internet, is on a path
India, with over 450 million the business landscape of to transform not just our
internet users, is the second- organisations by providing businesses, but also our lives.
largest online market behind them with opportunities Through this report, we have
China.1 Similar to the global across four dimensions — delved into the key internet
trend, the country is also affordability, brand, data and trends that are likely to shape
expected to witness a digital accessibility. Organisations, businesses in India in 2018.
transformation in the next with the help of certain
1. India tops list of countries where people ‘can’t live

without the internet’, Money Control, 17 January
2018
2. Internet users in India to stand at 829 million by
2021: CISCO, The Indian Express, 9 June 2017
#IndiaTrends2018: Trends shaping Digital India | 02
#IndiaTrends2018:
1 2 3
‘Mobile-first’ consumption for media, gaming Digital future lies in Rise of social and
entertainment generating significant avenues the Indian language content-based
for consumer outreach and engagement internet users commerce
101010010
7 6 5 4
Emergence of Indian Ecosystem creation

Emerging sectors -
brands accelerated Emergence of by internet business
Health-tech, Agri-tech
through digital ‘alternate commerce’ players to increase
and Ed-tech
platforms monetisation avenues
8 9 10
Frontier-tech
Robotics pushing Digital payments solutions like AI, ML
boundaries going mainstream and blockchain likely
to gain precedence
01 03 | #IndiaTrends2018: Trends shaping Digital India
‘Mobile-first’ consumption for media,

gaming and entertainment generating
significant avenues for consumer
outreach and engagement
Increasing number of Some of the key drivers Figure 1: Business models in

consumers accessing media propelling the OTT growth in practice in India
beyond the living room India other than the internet
Content Creators
televisions has resulted in penetration and smartphone
the advent of an era of on- growth include: Content Aggregators
demand content. Personalised
Single-TV homes: 95 Digital platforms
5+ inch screens in the form
per cent of Indian • SVOD
of smartphones and tablets
households own only one • AVOD
have emerged as the preferred
TV at home, making the • Freemium
entertainment enabler.
smartphone screen, a • Sponsored Content
Recognising the potential,
a number of Over the top key source for streaming
(OTT) media players have on-demand.3 Impact on other
entered the market and have entertainment sub-sectors4,5
placed content like live sports Low Digital Video Recorder Digital music now accounts for
events, reality programmes, (DVR) penetration: Role more than 70 per cent of the
kids shows, movies, TV of providing catch-up TV total music industry revenues
series, original content and content is being capitalised in India. The industry has
user uploaded videos on the by online video platforms. been witnessing a constant
fingertips of a user. shift from traditional music
Indians on the move: consumption platforms to
Global scenario1 Large target group is digital music, on account
OTT players globally are accessing the services of affordable internet rates,
exhibiting strong growth, with while on the go, not from improving digital infrastructure
the OTT revenues expected to home or office. and enhanced content
reach USD120 billion by 2022 availability.
as compared to ~USD64 billion Business models of OTT
in 2017, growing at a CAGR of platforms are presently at an
over 13 per cent. evolutionary phase
Online video consumption grew almost
India likely to emerge as Players are still trying 5X in India in 2017, outpacing that of
a key market for the OTT to achieve the balance social media & data as a whole. More
players between Advertisement than 90 per cent of the watch time has
Video on Demand (AVOD) been on mobile. An average user spends
100
and Subscription Video on 2.5X more time watching content on
Demand (SVOD) based mobile than the web. Small cities with
revenue streams. The Indian population of 1-10L clocked highest
OTT market still relies heavily growth rate in watchtime.
on advertisement revenue.
The SVOD model is yet to Ajit Mohan
million gain traction due to reluctance CEO
of consumers to pay for the Hotstar
is the likely figure of
unique monthly users in content. With the entry of
the OTT market in India global players, the SVOD 1. Global Pay TV and OTT trends, digital TV
research, accessed on 9 February 2018
by 2020, propelled by model is catching up though. 2. Faster Internet speed spurring OTT growth in
players’ presence across Some leading players are also India, The Economic Times, 26 September 2017
the OTT video value adopting a hybrid Freemium 3. Carving a Regional Strategy: Indian OTT majors
and digital content creators firmly believe in
chain2 model, where some content is regional power, Business Today, 8 November
2017
free and some is paid. 4. Media for the Masses: The Promise Unfolds,
KPMG in India, March 2017
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated 5. Online gaming in India: Reaching a new pinnacle,
with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved KPMG in India, May 2017
As most platforms are The online Indian gaming as mobile phone companies
providing similar genres of sector has also benefitted are evaluating this as a new
music, differentiation has significantly and is set to channel for customer outreach.
emerged as a key challenge grow to USD1 billion in 2021
Since these are services
for the industry. Players have from USD290 million in 20165.
where there is a higher
started leveraging digital Nearly 75 per cent of gamers
degree of involvement by the
technologies such as analytics, use affordable phones that
customers, brands are trying
machine learning and artificial are priced below USD300.
advertisements as well as
intelligence to customise This shows the acceptance of
engagement models through
services. affordable smartphones as the
these platforms. One of the
primary medium for playing
key reasons for the same being
online games in India.
that the primary device used
is the mobile, and there is
Mobile-first for faster
continual engagement with the
Indian consumers are adopting adoption
customer, far more than while
digital consumption in a large With the internet penetration using a computer.
way. What we’ve seen is that and smartphone story in India,
when consumers see great the adoption for media, gaming Target customer profiling
value in their experience, they and entertainment services has
adopt digital behaviors fairly increased significantly in the Media and gaming platforms
quickly. For instance, in just recent past with a large number offer a far sharper profiling of
over a year since the launch of of new users being added customers based on the choice
Amazon Prime Video, we have every month. One of the key of genre and the propensity to
already seen Prime members reasons for this is the ease of pay. These are key inputs for
stream video content from payments through the mobile tech product startups as well
across hundreds of towns and service provider and a relatively as mobile/laptop companies in
cities. As a mobile first country, higher trust in that medium. targeting the right customer.
more than 70 per cent of Prime
video content consumption A huge benefit with the mobile Challenges
happens over smartphones in first model is that there are
far more early adopters of Despite strong growth,
India. several challenges make India
these services since young
Akshay Sahi Indians too have access to a nascent market for OTTs.
Director - Prime and Delivery music, videos or games to Low data speed and unstable
Experience suit their preferences, rather connection, coupled with low
Amazon India than depending on the family’s broadband penetration, are still
preferences. prevalent in India. However,
the mass adoption of 4G
Mobile-first access for phones, growing affordability
customer outreach of data plans, and offline
The adoption of media and access to the otherwise
gaming through mobile bandwidth consuming video
devices is opening up a totally content is expected to propel
new channel for customer growth towards digital media.
acquisition, engagement and Awareness and exposure to
outreach. international content, has
raised the demand for high
The ‘One Digital identity for a quality content. Players in
customer’ view extends to the India also face monetisation
usage of media, entertainment challenges due to prevailing
and gaming services and the content piracy and still nascent
customer profile along with mobile payments infrastructure.
associated activities extends Moreover, the user group
to these services as well. is restricted to younger age
This leads to a new set of groups, who are usually
data points of the customer resistant to pay for content.
being generated, which can be Further, digital video business
curated for a better customer is faced with high input costs,
experience as well as outreach. coupled with low returns due to
5. Online gaming in India: Reaching a new pinnacle, Retail and consumer packaged still evolving business models.
KPMG in India, May 2017
goods (CPG) brands as well
Way forward6
Regional content to
Going forward, growth in SVOD 2 propel growth: With 75
revenues, regional content and per cent Indians being
Gaming is going to explode
vertical integration is expected. able to speak at least one
across all consumer segments
regional language, players
from casual to hardcore gamers.
have started including
SVOD revenues likely Competitive Gaming happening
1 regional content in their
to see strong growth: in premise or over the network, if
portfolio for the next
With improving data coupled with real time is going to
phase of growth
and digital payments really unlock the potential of the
ecosystem, coupled with In-App Purchases in India across
demand for differentiated the consumer segments and
Vertical integration
international content, 3 gaming formats. The triangulation
to be a key strategy:
SVOD model is expected of real money gamification, familiar
Players are expected to
to gain pace in India game mechanics and multiplayer
focus on content and
distribution capability, and features within the arena of game
build expertise across the of skill will lead to real value
entire value chain creation. Domestic startups need
to fix their own jigsaw puzzle to
6. From VOOT to Viu, Sun NXT to Hoichoi, OTT
find the sweet spot.
platforms are offering a bounty of regional
content, First Post, 1 November 2017 Manish Agarwal
Conversion rate for USD,
USD1 = INR63.8
CEO
Nazara Technologies Limited
02 #IndiaTrends2018: Trends shaping Digital India | 06
Digital’s future lies in the Indian language

internet users
A gamut of factors are Conducive government A number of categories

driving the adoption of policies have been a beacon have witnessed growth
Indian languages on digital of change
Over the last five years, news
platforms
and entertainment have
Major drivers that are
English has continued to be emerged as top categories
influencing the growth in Indian
the most widely used language amongst Indian language
language consumption on
on digital platforms in India. internet users. Furthermore,
digital include:
However, with the growing chat applications and social
base of Indian language users, media platforms have seen
particularly in the tier-II, tier- Digital increased adoption by Indian
III cities and rural areas as infrastructure language users on account
well as the rising smartphone of local language enabled
and internet penetration, it keyboards and smartphones.
• Internet penetration in
has become essential for In recent years, e-tailing,
India is expected to grow
organisations to focus on digital payments and online
to 52 per cent by 20213
building an end-to-end digital government services have
ecosystem that is both relevant • Increasing language also been initiated to enable
and valuable to Indian language support and content language content.
speakers. across the Internet
Figure 3: Category-wise
ecosystem
Currently, there are an Indian language internet
estimated 521 million Hindi users (million)7
language speakers and about
500 million Indian language E-tailing
Mobility 42
speakers in India1. In contrast, 165
number of English speakers
Online govt. services
stand at just 125 million2. • Number of internet- 41
Further, the internet adoption enabled smartphone 172
rate of Indian language users users crossed 300 million Digital payments
is higher than English-speaking in 2016 and would reach 47
users, which mandates 175
650–700 million by 20204
organisations to build full- Digital news
stack solutions for supporting • Average outgo/1GB data 106
regional languages on their reduced from ~INR200 in 284
platforms. June 2016 to ~INR21 in Social media
115
September 20175 301
Indian language internet user
base increased at a CAGR of Digital entertainment
167
41 per cent between 2011 392
and 2016 to reach 234 million Government Chat applications
users at the end of 2016. This policies 169
remarkable growth has led to 396
Indian language internet users
• Government’s digital
surpassing the English internet 2016 2021P
literacy drive to reach 60
users, which were 175 million
million rural households
in 2016.1
with an investment of
USD351 million by March
20197
1,3,7 2,4,5,6
Indian Languages – Defining India’s Internet, KPMG India’s internet users have more faith in content
in India and Google report, April 2017 that’s not in English, Quartz, 2 May 2017
While people in metro cities Devices

may use local language content Along with content, there
primarily for entertainment is also an effort to enable
purposes, increasing use of The future of the Indian internet devices with Indian language
digital medium would also is in Indian languages. However, support. The Department of
the quality of user experience is
impact other aspects of life in Telecom (DoT) has already
significantly below par compared
smaller sects of the country. made it mandatory to have
to that for English users. Lack of
The instances of use of high quality content, discovery and local language support in
internet in rural areas could ease of access to content, broken smartphones from July
invariably be larger, including implementation of local language 2017. Recently, we have
banking, healthcare, business experience continue to plague seen the introduction of the
transaction, information and these users, forming significant Indic keyboard with local
research, widening the reach barriers to wider adoption of digital language fonts and Unicode
to Indian diaspora. One such services. By treating the non- standard to provide the base
English users at par with English
instance is where a small for content creation and
users and hence designing a
farmer from Maharashtra’s discovery. Furthermore, many
rich digital experience for them,
Konkan region was able to companies can have much greater start-ups are also focusing on
expand the reach of mangoes reach and higher customer regional language assistance.
to other regions via social engagement. Software and technologies
media platforms — and that
Arvind Pani With the rising adoption
too using his own native
Co-Founder & CEO of Indian language content
language.8
Reverie Language Technologies on digital, consumer facing
Pvt. Ltd. digital players are required
Language wise Indian
to innovate their offerings to
language internet users -
conform to the growing native
2021
consumer base. This trend
The Indian languages currently Changes galore across the requires brands to embrace
have different internet adoption digital landscape a multiple language policy to
levels. By 2021, the number provide for the diverse needs
of Hindi internet users is With the rising adoption of the digital community, which
expected to be more than of internet amongst Indian is compelling businesses to
English users at 201 million. language users, a number of opt for multi-language data
Bengali, Marathi, Telugu changes are being witnessed analytics tools to gather
and Tamil internet users are across the digital ecosystem, critical consumer insights, and
expected to form 30 per cent including content creation, direct and indirect feedback
of the total Indian language device support, and enabling from content distributors and
internet user base.9 software and technologies. consumers.
The propensity to adopt Content
internet for each of the Players across several digital
languages will vary based on platforms have adopted a
growth in language speakers, regional content strategy to
user requirements and content reach out to the masses. For Vernacular is the future of Digital
availability. Tamil and Kannada instance, a leading digital India. We are witnessing a
speakers have the highest content provider has developed massive influx of non-English
propensity to adopt internet a content library with about first-time internet users in India.
50,000 hours of content in As this userbase grows and goes
in future with the Indian
eight regional languages and deeper into the hinterlands of
language enablement of the India, localisation is only going to
ecosystem at 74 per cent each has also launched a web series
become more and more important.
respectively. Telugu speakers in Tamil language. Given the diversity of our country
follow next with propensity with 20 languages having atleast a
to use the internet at 60 per million speakers, the best way to
cent.10 build scalable services for this new
audience is through focus on User
Experience (UX) and AI.
Ankush Sachdeva
8. Alphonso from Konkan reaches your doorstep as Co-founder & CEO
farmers take to social media for sale, DNA India, ShareChat
18 April 2016
9,10
Indian Languages – Defining India’s Internet, KPMG
in India and Google report, April 2017
The trend of multilingualism Way forward

on digital media has picked
The Indian language internet
up globally
user base is set to continue
Players in the digital domain to grow markedly, registering
have adopted regional language a CAGR of 18 per cent to
focused approach, distributing reach 536 million by 2021. This
their content and promoting growth is likely to be faster
their businesses in different compared to English internet
countries in several foreign user base, which is growing at With a growing online
languages. For instance, in 3 per cent to 199 million. Indian language user base,
2006, only about 65 per cent language internet users are digital players and brands
of major global brands had expected to account for nearly would focus on capturing
a Chinese language version 75 per cent of India’s internet tier-II, tier-III and other
of their websites. However, user base by 2021.14 untapped markets. There
in 2016, this share rose to a would be significant
significant 97 per cent.11 investments in creating a
Rise in user-generated digital channel by the likes
original content online of e-commerce players,
Challenges
news sites, payments
India is a nation of having Faster evolution and small finance banks,
more than 1,600 dialects of Indian language m-wallets, insurance
and 30 languages: Supporting internet users to players, etc., enabling
different languages is an added become active users direct access to a large
cost for content developers, portion of consumer base.
Internet platforms
device manufacturers and to become content
software vendors. So far, aggregators and
players have been able to witness increased
integrate, at most, seven to time share for Indian
eight languages only.12 language internet users
Difficulty in accessing Increase in hyper local
content: Regional language consumption driven
users face challenges in by content in Indian
accessing keyboards in English languages
language and do not have
much choice in accessing local Informed response to
language content online. sales initiatives by B2C
Low data speeds: Out of 122 players
countries, India was ranked
109 for mobile internet speed Indian language
and 76 out of 133 countries for enablement
broadband speed in November of platforms,
2017.13 supplemented by
mobile compatibility
Rise of digital
advertisements in local
languages
Indian language
enablement of digital
payment interfaces
Advanced technology
11. 11Languages And Digital Media- Why are to bring more Indian
Facebook, Twitter and Instagram Using
Translate?, Mayflower Languages, 6 April 2017 language users online
12. 12 Indian Languages – Defining India’s Internet,
KPMG in India and Google report, April 2017
13. 13India ranked 109 out of 122 countries in mobile Monetisation of Indian
internet speed; below Pakistan, Nepal, Business
Today, 12 December 2017
language internet user
14. Indian Languages – Defining India’s Internet, behavior analytics
KPMG in India and Google report, April 2017
Rise of social and content based

commerce: Brands are likely to create
engagement with consumers by
leveraging on content and community
Social commerce – an In India, the increasing

evolving trend significance of social
commerce is anticipated
Social commerce has created 50 per cent of India is below 25
to encourage enterprises,
a space for itself in the years of age – a largely young
regardless of scale to
global arena by leveraging audience who are digitally
establish a robust social media
technology to build a virtual inclined. Always on the go
presence in an attempt to build
platform for conducting and hooked on to the internet
communities. This in-turn,
community-based commerce through their smartphones,
could help firms harness the
Social commerce is an millennial population, which a characteristic common
extension of e-commerce has shown increased adoption across urban and rural India.
involving online media that of social commerce as a While engaging with such
supports social interactions and channel or reference for online audiences, brands should
user contributions. Globally, shopping. understand that the process
social commerce represents of driving engagement around
a well-established trend and Evolution of social commerce content and community will be
it is estimated that in 2016, in India largely be aided by technology
sales worth USD50 billion were that will play a key role in
Social commerce is gaining
generated or triggered using getting consumers to feel that
traction in India, as the nation’s
social networks, an increase of content and communities are
cultural diversity coupled
USD20 billion over 2015. Social personalised.
with an increasingly tech-
media was amongst the key
savvy population is creating Umang Bedi
factors driving global growth in
opportunities for marketers to President
social commerce, as it acted
establish community-based DailyHunt
as a facilitator for conducting
virtual platforms.
customer-to-customer (C2C)
commerce.1,2 It has emerged In the recent times, social
as a platform whereby commerce has slowly gained
marketers and brands can bring prominence in India with
together individuals across a focus on three pillars of
diverse culture and languages content, community and
and multiple geographies, commerce. The cultural
based on common interests diversity of India, further makes
to form a community. Such it an ideal breeding ground for
a community subsequently social commerce to take root,
forms the foundation of as it provides the foundation
commercial activity amongst to bring together fragmented
members. The driving force individuals and communities
is the learning and feedback into a consolidated
from first hand experiences marketplace.
and the data generated through
Further, social media has
multiple reviews, consumer
also been augmented due
behavior, preferences and
to increasing penetration of
recommendations. These
broadband services, availability
communities also act as lead
of cheaper data connectivity
generators for ecommerce
and proliferation of mobile
platforms.
devices that serve as a 1. ‘The future of e-commerce is social; here’s why’,
Financial Express, 7 March 2017
platform to access social media 2. ‘Social commerce is big business in Asia and it’s
platforms. set to change the way we buy and sell’, Business
Insider, 7 November 2017
Food and
Baby beverages
Financial
products services
Beauty and
Consumer
personal
healthcare
care
Key categories where

social media is gathering Women
Fashion
prominence care
Several market places have Financial investments for
370
•
been developed in India via women
the social media route. These • Experiential restaurants in a
allow small businesses to city
communicate with clients
• Health support products for
and consumers. They act as a
senior citizens
million platform to buyers and sellers
for interacting and selling used • New fashion brands/curated
products. fashion
Active social media users
in India by 20223 • Insurance policies
Business implications and • Maternity, baby care centres/
market opportunities baby care products
200
The increasing online • Automotive products.
presence of Indian Typically, social and content
businesses is expected to based commerce have a high
directly create opportunities impact on high engagement
in the domain of social purchase decisions. This
commerce. channel enables the customers
minutes to arrive at a decision faster as
Average time spent per The prospects of social
the community may provide
day by mobile internet commerce remaining a strong
multiple answers/experiences
users on online activities4 trend in the Indian retail
which could be related to the
segment are further enhanced
customer needs.
by the growing online presence
In addition, the emergence of a of Indian businesses. India Enterprises are increasingly
significant number of domestic has an estimated 51 million likely to leverage technology
start-ups, which have managed registered small businesses, of in the form of social media
to successfully raise funding which about 32 per cent have and data analytics tools in a
via the venture capitalist route, online presence.5 bid to find innovative means
reflect the growing prominence to establish content-based
of social commerce firms Referrals, trust factor on communities, which could
in India’s evolving retail personal experiences and subsequently be used for
landscape. ability to connect themselves identification of a target market
with others in the community for enterprises.
remain as the key reasons for
3. ‘Number of social network users in India from
2015 to 2022’, Statista, accessed on 4 May 2018 the growth of this mode of
4. ‘Indians spend 70per cent of mobile internet time commerce. Some examples
on social media, entertainment’, The Times of
India, 19 December 2017 where social commerce is
5. Google Aims To Get India’s 51 Million Small influencing purchase decisions
Businesses Online With Its New Digital Unlocked
Program’, Huffington Post, 4 January 2017 include:
Challenges
Key obstacles for social
commerce in India emanate Brands that connect with
from building and retaining consumers going forward
consumer loyalty on a will follow two key principles:
virtual platform as well as a message that has values
consistently monetising user at the center of their value
engagement. proposition and a voice that
As social commerce gains delivers that message that
increasing prevalence in India’s is authentic. The former is
retail landscape, it presents connected to a young buying
new challenges for businesses population that cares about
and brands going forward. how their purchases reflect
who they are and the latter is
Consumer retention: The key
an acknowledgement that in a
issue for enterprises remains
social commerce environment,
consumer retention, i.e.
in which consumers can
inculcating a sense of brand
talk back, brands have to
loyalty amongst members of
be sufficiently humble in
a community-based virtual
recognition of that fact.
platform and preventing them
from switching over to other Shailesh Rao
similar online communities Senior Advisor,
Conversion rate: Achieving TPG
a higher conversion rate in
terms of sales generated by
converting online ‘clicks’ or
potential interest of consumers Way forward
into an actual revenue
Social commerce is expected
generating source is a major
to remain a strong trend
challenge for firms, hoping
in India. With the growing
to tap social commerce as a
importance of e-commerce,
mean to expand the revenue
presenting consumers with a
base
wide array of options to choose
Increasing inclusion: A large from, social commerce is
portion of India’s population expected to be a key defining
remains without access factor in the consumer decision
to social media platforms. making process by involving
Bringing the social buying multiple digital influencers, and
experience to those who do thereby creating a consolidated
not currently enjoy access to market for businesses
virtual platforms is an obstacle to improve the shopping
faced by enterprises, which experience for consumers.
prevents them from accessing
new markets.
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with
KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved
Ecosystem creation by internet business

players to increase monetisation avenues
Ecosystems — a new Business ecosystems

bedrock for e-businesses growing into a digital
future in India
Globally, the internet is
assisting e-players for In India, e-businesses
mounting various strategic are creating altogether a
avenues (online/offline) for new virtual economy with
the e-business ecosystem. significant growth potential
Internet is playing the role catering to buyers as well as
of a facilitator between sellers.2 In May 2017, an
consumers and service Indian global
• This ecosystem is driven telecommunications
providers on a common
by consumers demanding services organisation
platform. E-players are
more intuitive, real-time, partnered with a taxi
addressing consumer
and integrated solutions app aggregator to offer a
needs and desires for better
and services range of exciting digital
consumer experience to
fast-track their own learning • Growing market services to consumers.
and innovation for operational complexity along with
efficiency and, most evolving consumer
importantly, to become a choices for products
powerful business platform. and experience and
emergence of new players
Global players are
are compelling players for
strategically increasing the
both forward and backward
cross-border business,
integration to provide
transforming social
a complete package of
networking to market places,
service to consumers
incorporating multi-lingual
under one roof
integration and using the
modified rebirth of brick and • Provision of end-to-end
mortar model to cover more services, flexible payment
ground to reach consumers. models, integrated
International Data Corporation infrastructure network
has predicted that about 50 etc. have saved time
per cent of big enterprises and allowed smooth
and more than 80 per cent operations, which led to
of enterprises with advanced increase in monetisation
digital transformation avenues across most
strategies are inclined e-business segments.
towards creating platforms to
build business ecosystem by
2018 end.1
1. Digital business ecosystems and platforms: 5 2. E-Business: Issues and Challenges in Indian
new rules for innovators, CIO.com, accessed on Perspective, Global Journal of Business
8 May 2018 Management and Information Technology,
8 March 2014
Growth drivers assisting

the ecosystem
Growing internet penetration to expand to provide a single
with increased use of platform for various services,
smartphones is leading resulting in the rise of online
towards connected India, shoppers.
which has led e-businesses
Increased Growth in
private Cashless logistics and Inclusion
investments transactions warehouses of SMEs in
Internet in startups Convenient payment The Indian logistics e-business
economy Government’s
models coupled market is likely support
upsurge Investments with additional to touch USD215 With
in the discounts offered by billion by 2020 from consumers
Majorly backed e-commerce opting for With the
e-business players USD160 billion in supporting
by e-commerce, industry in India have assisted the 2017, increasing at convenience,
the country’s witnessed a small and initiatives such
increased use of a CAGR of 10.5 per as Digital India,
internet y-o-y growth of debit/credit cards, cent, widening the medium
economy is 41 per cent to enterprises the government
as by the end of reach of retailers to has allocated
likely to double reach USD11.2 2017, there were remote locations have ventured
to USD250 billion in the into multiple a budget of
approximately 840 (tier-II and tier-III USD1,500 million
billion by 2020 first half of million debit card cities).6 e-services
from USD125 2017.4 catering end for augmentation
users.5 of telecom
billion in 2017.3 users.
infrastructure for
digital inclusion.7
Various factors driving this growth
From sites to systems — • E-services: Major subscriptions, email marketing,

strategies adopted e-business players have direct mailing, digital real
additionally started offering estate monetization, social
Flexibility and adaptability
other services such as ticket media and search engines.
to changing situations,
booking, listing businesses E-commerce organisations are
value chain optimisation of
etc. to increase their offering subscription-based
production and distribution,
market footprint leading to services to provide additional
high productivity at low
monetisation growth. benefits such as early
operating expenses have
access, free one-day delivery,
unlocked new avenues for Supplementary and
discounted delivery and priority
e-players such as: complimentary services:
consumer services.
Along with the core product/
Expansion to different
services, e-business players Payment services: Though a
domains: E-commerce players
are providing supplementary/ possible logical extension to
are expanding their product
complimentary services such building an ecosystem, this
range and venturing into
as quick services for nominal trend took shape in the past
different domains such as:
fee, introducing their own five years in India for the large
• Logistics: Due to declining payment portals and e-wallet E-commerce players. This
margins in the supply chain services. gives an added control and
and increased competition, customer stickiness for the
Lead generation models:
e-business players are internet business player.
Different ways to generate
strengthening their delivery
leads are incorporated by
arms with an aim of being at
different e-business players
the forefront of consumers’
including advertisements,
needs
3. Potential of E-Commerce in India, ondmc.com, 5. India has 29.1M credit cards, 840M debit cards 7. Government allocates 10,000 crore to boost
18 January 2018 in February 2017, Medianama, 21 April 2017 telecom infrastructure, The Telegraph, 01
4. Private equity and venture capital investments 6. 6“India’s logistics sector to reach USD215 February 2018
jump 41per cent to record $11 billion in H1 2017, billion by 2020: Survey, The Economic Times, 29
The Times of India, 03 August 2017 January 2018
Challenges incurred
Catering efficiently to an some challenge to the current
individual’s experiences in an Indian scenario.
integrated environment being
Technical and Big data management: High investments:

1 2 3
security issues: Managing consumers’ Creating an ecosystem
With the technology data silo to the best requires upgrading
advancement and possible use is a back-end and front-
omni-channel retailing challenge. Information end integration.
push, e-business leads generated through E-organisations would
organisations would different models and have more data, and
require to manage sources have to be put smart selling and
technical challenges in in best use for reuse in multi-channel retail hub
the areas such as server, the service domain. operations, which incurs
bandwidth, dynamic IP significant investments.
address, data privacy
and security issues
when there are multiple E-business ecosystem is here to stay
ecosystem elements to The future lies in ‘knowing the customer’ and ‘smart
cater to. technologies’, which could enable these businesses to work
in robust harmony with each other and improve the lifetime
value of a customer. Hence, a few key horizontal classifieds
have already started investing in these technologies to track
a customer through his/her mobile device.
Emergence of ‘alternate commerce’
The e-commerce and Despite its significant

consumer goods and growth in the past few
years, e-commerce only
services market is now accounts for about 2 per cent Brands
expanding and turning of the total retail sector.2 Brands tie up with
to alternative ways Currently, one of the biggest assisted e-commerce
to reach untapped challenges retailers are organisations to expand
audience across the facing is to connect with their reach across the
67 per cent of the Indian country
country population having no access
01
India’s e-commerce market to the internet.3
is primarily driven by rising
To address this issue,
use of the internet and
alternate commerce
mobile phone penetration.
channels, such as assisted Assisted e-commerce
This is expected to further
commerce, have been organisations
expand at a CAGR of 30
adopted increasingly by Assisted e-commerce
per cent to reach USD200
online retailers. organisations provide
billion by 2026.1 Significant
opportunities in the market local merchants with a
‘Alternate commerce’ — platform (an application)
are driving the country’s
the concept which can be used to
brick and mortar players
to change their strategy ‘Alternate commerce’, place an order
to offer services online, a combination of omni- 02
and vice-versa. Brands and channel model and assisted
businesses are moving commerce, is poised to
towards an omni-channel become a key enabler to
approach to offer a complete drive sales for the Indian Local merchant
and seamless consumer retailers An offline consumer can
experience to an evolving just walk into a kirana
consumer. How does it work?
store, select a product
In assisted commerce a and place an order on the
consumer does not make app with the help of the
a purchase on an online shopkeeper.
Traditional retail followed the platform on his/her own. It 03
model of customers coming to 04
is more like an integrated
the brand. The retail reality of platform, alternative to
today is that we, as retailers, traditional e-commerce,
must go to customers. omni- which brings together offline Offline consumer
channel is the vehicle by which buyers, sellers and local The product can then
consumer-centric brands are merchants (such as kirana be picked up by the
able to engage and reach stores, Aadhaar centres, consumer once it
out to their audience more railway ticketing centres, arrives at the shop or
intimately and discover the medical stores and mobile alternatively delivered at
right customer answers. shopping outlets). the consumers’ address
by the local merchant.
Ashish Goel
CEO and Co-founder
Urban Ladder The term-assisted commerce leveraging newer channels,
is not new to the global in addition to omni-channel
arena. In countries, such as models, retailers in such
Bangladesh and Indonesia, countries are able to tap the
1. India’s e-commerce market to hit $200 billion
by 2026: Morgan Stanley report, LiveMint, 13 where retailers were unable rural population by providing
October 2017
to capture rural market due assisted services, thus
2. Morgan Stanley explains why India’s
e-commerce market is a hot investment to several technical barriers, enabling technology-deprived
opportunity, Quartz India, 29 September 2017
assisted commerce is people access e-commerce.
3. Internet penetration in rural India abysmal:
Report, The Economic Times, 29 September playing a vital role, allowing
2017
them rural market access. By
Key enabler driving this

trend in India
Untapped rural population is the lack of willingness
that has limited or non- of consumers to buy
existent internet access: products without actually
With about 67 per cent of physically seeing the
India’s population residing in product themselves. Since
rural areas having limited or a considerable consumer
non-existent internet access, base is still comfortable
there is a growing need for with offline shopping. The
retailers to come up with consumer trusts the local
innovative solutions to cater merchant for the product
to this market.4 Assisted recommendations and the
commerce, by reaching to platform used to buy the
these remote rural areas, is product; hence pre-paying for
becoming one such solution a product online which is a
for the retailers. key barrier to adoption of
e-commerce in these towns
Trust with the local
is not a deterrent to a buying
merchant: One of the
decision.
biggest concerns of retailers
How has the trend rural areas in a cost effective Way forward
impacted the Indian retail way, and also use this
With the increase in number
sector? medium for marketing their
of start-ups and established
products to the masses.
Rise in start-ups offering retail brands foraying into this
assisted commerce Moving closer to the space, ‘alternate commerce’
services: In the past few consumer behaviour: The is likely to have a promising
years, there has been an use of assisted commerce future ahead. FMCG, fashion,
increase in the number is driving access to mobile and electronics
of start-ups, which are consumer behavior data products would be the
partnering with retailers to and preferences using a next wave of categories to
help expand a brand’s reach combination of digital and choose assisted commerce
to remote areas in India. brick and mortar stores and as a channel to enhance
These startups have also is expected to assist the their reach and gain further
been successful in attracting brands in driving marketing customer information.
investors and raising funds to decisions, try innovative
The rural consumer who is
further expand their model in value propositions and
going to be at the forefront
more towns and villages. understanding the consumer
of India’s retail growth story
better.
Established brands in the future can be brought
investing in assisted One of the biggest to shop online through these
commerce trough exclusive challenges for assisted platforms while continuing to
partnerships: There commerce organisations is adopt internet.
have been some notable to get the right store for the
It is an avenue for local
partnerships in the Indian product mix. Organisations
merchants to be able to
retail industry that hints with over 30,000 store
expand their product portfolio
towards a promising future network need to profile the
to their customer and hence
for ‘alternate commerce’ stores well so that product
an additional source of
in the country. Brands are clusters are available only
income.
looking at leveraging the at those stores with a
power of connected retailers catchment area matching the
through these platforms to target audience of the brand.
take their products in the
4. 63 million people living in rural India do not have

access to clean water, Hindustan Times, 21
March 2017
06a 17 | #IndiaTrends2018: Trends shaping Digital India
Health-tech:
Leveraging technology
to enhance healthcare
Emerging sectors
Beginning of a digital era Technology adoption in Technologies empowering

in healthcare India has its own share of healthcare
challenges. Low IT budget
Health-tech is improving Key digital healthcare
in hospitals, lack of in-
the Indian healthcare trends in Indian healthcare
house IT expertise, slower
landscape using three key ecosystem
adoption rate by doctors,
mainstays of healthcare,
unavailability of regulations, • Predictive Analytics
i.e., quality, accessibility
and cyber-attacks may Smart algorithms for
and affordability.
act as impediments for patient data mining to
In recent years, several organisations looking identify risk factors and
technological innovations to invest in advanced recommend preventive
have significantly technology products or treatment
transformed the Indian services in India. In addition,
• Online health services
healthcare ecosystem. The the growing health insurance
Due to booming
country’s rising population, sector in India is likely to
e-commerce, rise in usage
scarce human resources, increase the demand for
of services for purchasing
inadequate infrastructure (0.9 more efficient systems
Over-the Counter (OTC)
beds per 1,000 patients), for storage and retrieval of
drugs, booking diagnostic
coupled with a low doctor- information.3
tests, and medical
to-patient ratio (0.62 doctors
consultations
per 1,000 patients), lead to
an increased demand for • Remote monitoring
advanced integration into As our economic situation Providing point-of-care
healthcare. Digital adoption improves and life expectancy diagnostics, teleconsulting
and literacy could facilitate increases, demand for and e-prescription
the growth of healthcare healthcare services, particularly capabilities to remote and
market from USD110 billion for chronic diseases rural population in India
as reported for 2016 to management is exploding. • IoT and Big Data
USD371 billion by 2022.1 Artificial Intelligence and Facilitates data collection
Exponential growth has been Internet of Things are the two with the help of distributed
witnessed in the number most high impact technologies devices for diagnosis and
of Health-tech start-ups assisted by 4G/5G data treatment prediction
that reached ~320 in 2017 connectivity. Newer business
models deploying these two • EHRs and Cloud
from 250 in 2016. The total
technologies at scale have Computing
funding for these startups
the potential to transform Reliable source of patient’s
also grew from USD70
healthcare in India. complete information,
million in 2016 H1 to USD160
storing of medical records
million in 2017 H1, thus
Dr. Ajay Bakshi, CEO using cloud, to facilitate
showcasing confidence
Parkway Pantai Hospitals India early diagnosis
within the investor
community in this segment.2 • Wearable devices
Devices such as
Adoption of technology in Local investors and smartwatches, activity
Indian healthcare sector digital start-ups in India trackers, fitbits, etc. for
Lower levels of IT have focussed more on real-time monitoring of
investments and e-commerce, appointment body vitals such as heart
adoption rate, lack of setting and telemedicine rate, blood pressure etc.
infrastructure and tight services, whereas global
data protection laws are investors are getting more 1. Indian healthcare market to hit $372 billion by
the major challenges attracted towards other 2022, The Times of India, 3 December 2017
pertaining to technology segments like mobile Health, 2. Fintech, healthcare startups most sought after,
implementation. wearables and big data.
Fortune India, 7 November 2017
3. Emerging trends in Indian Healthcare –
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated Technology to become a core function, Wipro:
with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved DandB Research, 2018
Decision support
•
Standardised
•
and e-prescribing
workflows • Wearable devices
• Professional-to-professional
• Business process support and apps
telehealth
• Patient outcome registries • Homecare
• Teleconsultation
• Patient flow management • Patient portals and
• Shared Electronic health
records, EHRs
• Risk stratification/ record (EHR), real-time data
Predictive analytics • Online communities
• E-learning tools
• Vital signs monitoring
Healthcare
service provider Physician Patient
Digital channels used by
Opportunities for Online appointments and Advanced hair care, Maternity

technology in healthcare4 e-Consultations: There care, Nutraceuticals, Baby
is a focus on appointment products and Senior care;
Technologies such as
booking segment by digital and online channels will
Electronic Medical Records
start-ups via online portals serve as a key channel for
(EMR), Mobile Health
and mobile apps. selling these products.
(Mhealth), telemedicine,
and big data systems are Telemedicine: It can India’s digital health
likely to have a promising tackle India’s healthcare ecosystem is still at a
future in the coming years. accessibility and affordability nascent stage, and requires
challenges, especially in substantial investments
Collection of health data:
tier-II and tier-III cities where and expertise through
There has been an increased
quality tertiary care is not collaborations from both
interest from several
available. private and government
stakeholders to initiate
sectors. There is a need to
collection of health data to E-Commerce for healthcare
develop a framework for a
assist healthcare providers products: There is an
smart healthcare system, and
with better clinical, economic increasing interest in
to use technology to improve
and humanistic outcomes.5 products for elderly, hospital
clinical outcomes, healthcare
care as well as maternity.
Mhealth and Wearable delivery, patient safety and
There are increasing
devices: The demand for engagement. These digital
number for health oriented
these wearable devices is healthcare platforms are
ecommerce websites on the
likely to increase, driven by pivotal to fundamentally
rise in India due to the niche
rising number of chronic reshaping the delivery of
requirements.
disease patients, who require India’s healthcare.
constant monitoring and Consumer health: There
check-ups. is a significant increase in
demand for products like
4. 7 key market segments of digital health in India, 5. Innovative Trends that will Transform Healthcare
Dr. Hempel Digital Health Network, 01 July 2017 Industry in 2018, Entrepreneur India, 2018
06b 19 | #IndiaTrends2018: Trends shaping Digital India
Agri-tech:
Enabling a new green
revolution
Emerging sectors
Agri-tech — emergence of Rise of start-up ecosystem:

a new wave The Indian Agri-tech sector is
evolving with the emergence
The Indian agriculture Some key trends which could
of several start-ups
sector is still in a nascent drive agri and food economy in
engaged in modernisation
stage in terms of adoption short to medium term include
of the agriculture sector.
of digital empowerment - image processing to drive
Furthermore, a number of
and new technology. transparency and efficiency in
start-ups have emerged
India is an agrarian economy recently, which are engaged agri supply chain, shopfloor-
with about 60 per cent in providing innovative and izaiton of agriculture to drive
of rural households being sustainable solutions to productivity and precision
dependent on agriculture for challenges faced by farmers. agriculture, combination
their livelihood.1 Apart from These solutions include approach of agri-tech, fintech,
being the world’s second- biogas plants, fencing and cleantech and foodtech will
largest producer of fruits and water pumping facilities, become commonplace,
vegetables, the country is weather prediction service, alternative proteins to go
the largest producer of milk, solar-powered cold storage, mainstream, personalised
second-largest producer equipments such as spraying nutrition will become a norm.
of sugar, and the leading machines and seed drills.4
country in terms of coconut Hemendra Mathur
Government focus on
production.2 However, the Venture Partner
Agri-tech: In a bid to boost
contribution of agriculture Bharat Innovations Fund
the Agri-tech sector in the
to the country’s Gross value
country, the Ministry of
added (GVA) has been
Agriculture launched a first-
continuously declining since
of-its-kind Agriculture Grand
FY14 and is expected to be
Challenge in December 2017. Upsurge in internet and
around 3 per cent in FY18.3
The initiative aims to benefit smartphone penetration:
Agri-tech has the potential Agri-tech start-ups through With increasing internet
to address a number of incubation, mentoring, and usage and rising smartphone
challenges faced by the providing access to markets penetration, Agri-tech
sector and, subsequently, to help solve some of the organisations are now
change the face of the Indian key challenges plaguing the able to offer information,
agriculture. agriculture sector.5 techniques, and efficiencies
Some of the other key to farmers both for pre-
Evolution of Agri-tech in harvest applications and
initiatives by the Indian
India post-harvest usage.1
government include AGRI
Upsurge in the UDAAN program, setting
internet usage, up a dedicated Agri-tech
infrastructure fund, digital
increase in
India, launch of e-National
smartphone Agriculture Market (NAM)
penetration, portal, etc.
emergence of start-
ups and various
government initiatives
in rural areas are
facilitating technology 1. 12 Indian Agri-tech Startups To Watch Out For In
2018, inc42, 29 December 2018;
4. Agri-tech India: Towards Doubling the Farmers
Income, Tech Story, 20 December 2016;
adoption in the farm 2. Digital Technologies Transforming Indian
Agriculture, WIPO, 7 June 2017;
5. Government invites Agri-tech startups to resolve
sector issues, Your Story, 16 February 2018;
sector. 3. Monsoon blues, Business Line, 17 April 2018;
Reforming agriculture using

technology - Key offerings
Agri-tech organisations are as increasing productivity,
engaged in addressing some improving market access and
of the key issues prevalent weather forecasting.
in Indian agriculture such
Fintech platforms Farming-as-a-Service E-commerce and market

linkages
Offering applications and Offering farming services Providing platforms to farmers
platforms that connect and machinery on rent for and merchants where they can
farmers digitally and provides reducing capex and increasing buy agriculture inputs and sell
them financial, agricultural affordability products without involvement
and government-related of middlemen
services based on their crops
and crop cycle
Nano technology IoT and big data Post harvest technologies

Providing facilities such Facilitating data collection and Offering technologies and
as use of nanocapsules, decision making using drones, machineries for cleaning,
nanoparticles and viral sensors, IoT technology, and sorting and processing crops at
capsids to cure diseases, data analytics the farm, and cold storage to
enhancing nutrients reduce wastage and increase
absorption by plants shelf life of food items
Smart machines Precision farming

Providing remotely operated Facilitating application of
machines, operating precise amount of inputs
with greater precision, such as water, fertilisers and
and performing specific pesticides, at the right time for
operations using harvesting increasing productivity
robots, seeding machines,
electrostatic sprayers, etc.
Market opportunities in is expected to cross USD5 10 per cent (USD313 million)

Agri-tech billion by 2023, registering of the global investments in
a CAGR of more than 10 agriculture were garnered by
Rising investments and
per cent from 2016-2023.7 53 Indian Agri-tech start-ups
prevalence of substantial
The global agriculture robots in 2016. There are significant
opportunities in the
market is expected to opportunities for Indian
domain can boost the
increase from ~USD3 billion Agri-tech organisations in
growth of Agri-tech
in 2016 to USD11 billion in areas such as enhancing
organisations in the
2023, witnessing a CAGR of crop production, augmenting
country.
about 21 per cent.8 A number the nutritional value of the
The United Nations has of global organisations are crops, improving the overall
predicted that, in order to engaged in making use of process-driven supply chain,
meet the growing demand, latest technologies such as reducing the input prices
the world would need to Artificial Intelligence, Internet for farmers, and minimising
produce 70 per cent more of Things (IoT) and Big Data wastage in the distribution
food in 2050, than the to develop new solutions for system.9
current production value.6 agriculture.
Technology is expected to 6. Global IIoT Market in Agriculture 2017, PR
Similar to the global trend Newswire, 8 January 2018;
play a key role in increasing
several organisations in India 7. Precision Farming Market grow at 10per cent
the agriculture output in the CAGR from 2016 to 2023, Agri-tech Tomorrow,
are engaged in devising new 19 July 2017;
coming years. The global
Agri-tech solutions. About 8. Agricultural Robots Market ;PR Newswire, 2
precision farming market November 2017;
9. How Startups Are Changing The Face Of Indian
Agriculture, Inc42, 16 June 2017;
Drone-driven
crop health
assessment
Smart
machines and On-demand
equipment farm input
rentals delivery
Application-
based Weather
financial prediction
services
Some of the key Agri-tech solutions

available in India
Online
agro Robots for
stores harvest
Crop
Soil health
protection
assessment
Furthermore, India’s distributed across the

population is expected to country, as farmers lack
reach 1.4 billion by 2020. The awareness about new
increasing population, along technologies and are still
with rising income levels, practicing old techniques
would generate increased
Cost of technology:
demand for food and non-
Affordability is one of the
food crops in the country.
key factors which inhibits
Agri-tech organisations could
the growth of technology
prove to be effective in
adoption. Small and marginal
bridging the demand–supply
farmers do not have enough
gap existing in India.10
funds to purchase new
technology-based products
and are, thus, left out of its
ambit
New middlemen: Owing
to the digital divide and
low literacy rate amongst
Growth in Agri-tech could
farmers, a new class of
also positively impact the
middlemen has emerged
financial services sector.
who provide Information and
Agri-tech organisations
Communication Technology
could engage in providing
(ICT) services to farmers.
solutions such as
These middlemen could
insurance products based
distort information for
on weather predictions
personal benefit12.
and crop data analysis;
savings platforms tailored In addition challenges such
for the needs of farmers; as lack of infrastructure,
alternative and more low connectivity, and lack of
accurate credit scoring for training in modern techniques
facilitating micro loans, and technologies could act as
etc.11 growth hurdles for Agri-tech
start-ups.
Way forward
Challenges
Increasing population, rising
Factors such as lack of income levels, growing
awareness about new exports and increasing
technologies, cost of consumption could drive the
technology and low demand in the agriculture
computer literacy impede sector. In addition,
the growth of adoption of continuous government
technology by farmers in and local support as well as
rural areas. investments from foreign VCs
As Agri-tech makes inroads has set the Agri-tech sector
into rural India, entrepreneurs on a healthy growth path in
would encounter a set India. The need is for all the
of new challenges which stakeholders coming together
could hinder their reach and to build a sustainable
effectiveness. ecosystem for the growth of
the sector.
Lack of awareness: The
reach of technology is
very limited and unevenly
10. Agri-tech India 2018, Agri-tech India, accessed on 8 February 2018;

11. Can Next-Generation Startups Unite Agri-tech and Fintech for Farmers in Emerging Markets, Unitus seed
fund, 19 September 2017;
12. Transforming agriculture with e-technology, The Hans India, 22 May 2017
06c 23 | #IndiaTrends2018: Trends shaping Digital India
Ed-tech:
‘E-Learn India’ – Digitally
innovative learning for the masses
Emerging sectors
Technology is enabling the Market size1,3

education system to explore
new dimensions effectively Internet user-base Virtual Reality (VR)
and efficiently, as it allows (in million)
and Augmented
personalised learning, builds
Reality (AR)
capacity and drives decisions
based on real-time data.
Technology impacts three
432 465
2016 H1 2018
Provides experiential learning
through graphical simulation
core issues of the education and gamification, increasing
sector – access to quality engagement and retention
education, effective learning
and personalisation – at
scale.
India has the world’s largest Data analytics
K-12 education system,
with more than 260 million
enrollments today, which Paid user-base Increasing digitisation and
have risen at a CAGR of (in million) availability of augmented data
about 20 per cent during % is enabling new teaching
~44 methodologies with deeper
2011–151. This is the largest GR 9.6
CA
user segment for learning in insights
India. India’s online education 1.6
industry is expected to 2016 2021
grow exponentially to Machine Learning
touch USD1.96 billion by and Artificial
2021 from USD247 million Intelligence
in 20162, majorly driven Online education
by increased consumer system (USDbillion) Enables uniform learning
adoption supported by 52%
experience for students
changing business models G R~ 1.96 through personalised content
CA
and improvements in product based on individual learning
offerings. The technology- 0.247 capabilities
driven Indian education 2016 2021
technology (Ed-tech) sector
has propagated innovative Advancements in the Ed-
learning products and tech industry Virtual classrooms
promoted better learning
experience leading to an Advanced technologies
enhanced acceptance of are being leveraged to Virtual classrooms have
alternative modes of learning disrupt traditional learning emerged as an asset−light
in India. methodologies, enhancing model for offline players to
user experience and expand their network across
eradicating bottlenecks for geographies
educators.
With the evolving dynamics,
key recent trends in the Ed- 1. Online education in India, a study by KPMG in
India and Google, May 2017
tech industry are as follows: 2. Education startup Oliveboard surpasses 2 m
subscribers in India, Business Standard, 20
January 2018
3. Number of Internet users in India could cross
450 million by June: report, Livemint, 15
February,2018
Growth drivers Role of the government: From

provider to facilitator6
Learning is becoming easier Rising internet penetration
and more experiential. I and technological The Government of India
believe that Ed-tech will advancements are largely has recognised the role of
bring innovations in not facilitating the rapid technology in education via
only the pedagogy, but evolution of the education schemes and policies such
also in the content. Making sector in India. as Revitalising Infrastructure
online education a more and Systems in Education
Ed-tech industry is expected to
collaborative and immersive (RISE), ICT@Schools, Digital
witness further transformation
experience is one of these India and National Optical
driven by:
areas. Customised learning Fibre Network.
experience through hybrid Ed-tech industry is expected to
models (online-offline) & using witness further transformation
AI/ML to build smart products driven by:
would be the way forward Cost effectiveness of
online courses: Infrastructure
Ishan Gupta The associated cost in In the Budget 2018, RISE has
Managing Director - India traditional education is received an investment of
Udacity much higher as compared USD15.37 billion
to that of online education Digital India
system. Online skill Allocation of budget for Digital
enhancement courses are India has been doubled to
about 53 per cent cheaper USD0.4 billion in FY18-19 from
than offline courses.1 USD0.2 billion the previous
year.
Skill development
To impart skill training, 306
Pradhan Mantri Kaushal
Rising enrolments aided Kendras have been established
by e-learning:
Government is targeting For effective integration, key
a Gross Enrolment Ratio focus areas for the government
(GER) of 30 per cent by are:
2020.4 E-learning aided
• Holistic approach focussing
by advanced technologies
on providing appropriate
would meet the additional
and reliable access to
requirements and assist
infrastructure
to reduce the supply gap.
• Pedagogically sound digital
resources for students and
teachers
• Capacity building
Demand for specialised programmes to enable
professionals and teachers to use ICT as
higher competition for well as remodeling teacher
professional courses: education using technology
In the wake of rising • Data systems for improved
employee layoff and governance.
scarcity of jobs, online
courses help impart ‘on-
the-job’ skills. Research
done by World Bank 1. Online education in India, a study by KPMG in
India and Google, May 2017
suggests that 69 per 4. India can provide higher education to 40 million
cent job threats are due students by 2020 through foreign collaboration,
Indian Express, 26 December 2017
to automation such as 5. Going, Going, Gone: Automation can lead to
machine learning and unprecedented job cuts in India, Business
Today,18 June 2017
artificial intelligence.5 6. Education, POV, KPMG, 1 February 2018
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated
with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved
Business opportunities Challenges:

With the growing opportunities in the With the progressive
technological education sector catalysing transition from traditional
advancements, e-players quality education at scale. pedagogy to computerised
are exploring diverse learning, education sector has
witnessed disruptive growth.
Opportunities Expected characteristics However, certain obstacles
such as infrastructure access
and affordability are still a
Innovative • Improve higher-order thinking skills
challenge.
pedagogic models • Increase conceptual understanding
(Gaming, online Poor accessibility and
laboratories • Enhance creativity, imagination and inadequate infrastructure: The
and real-time problem-solving skills overall internet penetration is
assessment) 33 per cent out of which rural
area’s contribution is negligible7
Simulations • Provide relatively low-cost flexible Revenue optimisation:
(Remote or virtual access to experiential learning With easy availability of
online laboratories) freely accessible resources,
increasing the user base for
International • Overcome barriers of geography paid services is a challenge
collaboration and formal classroom hours
platforms Substantial cost of
• Experience multicultural development: Content revision
communication is a costly mandate and
remains a key challenge in the
Real-time • Monitor student learning and sector
formative modify teaching accordingly
Competition in Ed-tech
assessment • Enable active participation sector: With increasing
and skill-based
• Enable skill development to be competition, providing a
assessments
monitored in a comprehensive way differentiated value proposition
to users is a challenge
E-learning • Open educational resources and Reluctance to change:
several open online courses High installation cost and
• Helpful for autonomous learners. unfamiliar teaching methods
hinder adoption in T-II and T-III
cities, leading to adoption of
conventional learning
Road ahead
With exciting disruptions teaching is still a culture and a key trend in the coming years
taking place in the education thus a large opportunity for the with markets like Middle East,
technology sector, there K-12 segment. Further, test South East Asia and select
is significant scope for preparation and certification countries in Europe and Africa
unprecedented growth. Young courses form a large pie for opening up for Ed Tech.
entrepreneurs and education the growth of Ed-tech space in
leaders are expected to create India.
products and solutions to
Growth of Indian ED-tech
solve the core issues in the
businesses in the international 7. Year-Ender 2017: 5 major challenges faced by the
Indian education system. Ed-tech sector in 2017, India Today, 19 December
markets is also expected to be 2017
Assistance beyond school
Emergence of Indian brands accelerated

through digital platforms
Rise of online brands, Indian brands embracing

globally digital platforms
As billions of consumers India is not left behind by Digital platforms play a vital
are using internet the wave of online only role in helping early stage
worldwide, brands are brands. The country’s brands by creating two way
reimagining the way e-commerce market has communication channels to the
products and services grown from being an consumers. Wide adoption of
can be delivered to them emerging industry to an digital platforms has increased
online. industry steering towards accessibility for brands as well
momentous growth. as consumers. Consumers are
The increased digital
attention and change in Currently, a large number able to discover brands at a
consumer behaviour have of consumers in India are very early stage of their journey
forced organisations to embracing the virtual world and brands benefit by finding
rethink the way they connect of shopping. Much of the early adopters from a wider
with the new-age consumer. growth of the industry range of consumer profiles.
organisations across various has been triggered by And most importantly, you can
industries are focusing on the increased scope of afford to build a geography
creating a seamless digital the internet, smartphone specific brand (all Metro – tier
experience for consumers. penetration, increase in I, because you can define the
The trend has also forced disposable incomes and set of consumers that you
traditional brick and mortar comfort in online shopping. want to talk to.
brands to adopt online selling Indian population is now
model, and are thinking more inclined towards Neeraj Kakkar
beyond traditional ways of availing products and services Co-founder and CEO
connecting with consumers. online. Hector Beverages Pvt. Ltd.
Major brands around the Consumers are now looking

world are investing and for more personalised and
looking at different ways unique product offerings. As
to tap billions of connected an outcome of which, many
consumers. Building an start-ups across various
online brand not only helps verticals have launched
reaching a larger audience, their products by creating
but also helps monetising the a digital-first brand. Using
untapped opportunity. digital platforms, Indian
brands are targeting a large
There are global organisations
digital first consumer base
which are valued in billions,
which is purchasing anything
having no physical assets,
to everything through online
and have managed to
portals. These online brands
become industry leaders in a
are not only successful in
short span of time. Another
running their businesses, but
success story is of a leading
are also making significant
Chinese mobile maker who
profits. Venture capitalists in
has since its inception,
India, apart from supporting
sold its mobile phones only
established e-commerce
through web portals and
players, are focussing on
within in a short span of time,
specialised and online brands
has managed to become one
as well.
of the leading mobile phone
makers in the world.
Factors fuelling growth of Market opportunities and Challenges faced

online brands in India impact
Although online brands
Traditional stores are have seen a significant rise
Digital platforms are acquiring niche online in their online sales, they
helping online brands start-ups: Many online still face various challenges
to reach to a larger first brands are becoming like technological issues,
audience: attractive acquisition targets personalisation, search and
for traditional stores that are navigation while selling
It has emerged as a new
struggling to adapt to the rise their products through
channel for online brands
of online shopping. desktop/laptop or mobile
and is helping them in
site/app.
various ways: Retail logistics sectors to
witness further growth: Personalisation: With a
• Reaching out to a larger
The e-commerce logistics variety of product options
audience
sector continues to evolve available online, it becomes
• Allowing better rapidly with changes in the mandatory for an organisation
targeting and well- business environment. The to understand the buying
focussed traffic effort sector is expected to witness trend of users and come up
• Reducing time and increased penetration in with personalised offers.
cost to build a direct-to- tier-I and tier-II cities. Online
Search enhancement and
consumer brand only brands are dependent
site navigation: While
primarily on logistics players
Focussing on less browsing on a website or an
• for delivery.
dependency on application, search results
physical location or play a vital role in converting
Opportunities created
walk-in traffic to drive a search into a sale. The
The online brands are organisations often fail to
demand.
disrupting e-marketplace provide an intuitive platform
with differentiated and lose out on consumers.
Matching consumer products, and are also
Building trust: Trust forms
needs opening up significant
one of the most important
• The increasing levels
opportunities for
factors for online brands;
of awareness among themselves and their
any failure to deliver as
the Indian consumers buyers.
per expectations would
is creating demand for Start-ups helping artisans lead to failure in retaining
niche products. and craftsmen: Several start- consumers.
ups are working closely with
artisans, small vendors, and Way forward
Brick and mortar stores craftsmen to put their work
Despite the above-mentioned
breaking legacy on display. They are also
challenges, as the internet
• Many traditional helping these communities
economy continues to grow
manufacturers have gain visibility and sell
and more consumers look
started collaborating/ their products directly on
forward to online shopping
pairing with established e-commerce platforms.
in India, Indian brands would
e-commerce players to Fashion segment can continue to invest and
gain enhanced visibility drive growth: Fashion harness digital platforms to
for their collection e-commerce is one of the tap the millions of connected
online. largest segments which people in the country. The
received highest funding and next ideal step for these
investments in the recent Indian online brands would
years. As consumers look be expanding their footprint
for a niche and affordable and presence globally.
fashion, the segment is
Key sectors with prominent
likely to create significant
online brands will include
opportunity for new brands.
fashion and accessories,
personal care, baby products
and mobile phones.
Robotics pushing boundaries
The convergence of emerging Autonomous vehicles: Tech Factors fuelling this

technologies, such as majors around the world are revolution
Artificial Intelligence, robotics developing fully autonomous
and the Internet of Things cars that would be capable to
(IoT), is paving way for a navigate on its own without a
new tomorrow by displacing human operator.
existing products and Speed Accuracy
services. Advances in new
technologies – from robots to In October 2017,
new-age systems, equipped history was created
with rational thinking – are when a humanoid
robot, developed by a Increased
curtailing the limitations of profitability
human capabilities. Hong Kong-based
organisation, became
The global robotics market the first non-human to be
is expected to grow four granted full citizenship in
times to reach USD147.26 Saudi Arabia.5 Cost Privacy and
billion from USD35.23 reductions compliance
billion in 2016.1 In many
countries around the world, Robotics revolution in India
from mining to automobile,
majority of industries are India’s robotics industry,
although in its nascent Higher
trying to automate their productivity
processes in order to stage, is starting to show
eliminate human errors. signs of speedy growth.
Below are a few examples The country’s surgical
that highlight the mass robotics market is estimated
Adoption of robotics going
adoption of robots globally: to increase at a CAGR
mainstream
Defence: In 2016, Russia of 20 per cent to reach
USD350 million in 2025 from Rise in investments: Many
developed a humanoid
USD64.9 million in 2016.6 well-stablished multi-national
military robot designed to
Primarily driven by numerous organisations in the country
replace the soldier in a battle
government initiatives to are also heavily investing in
where conditions are harmful
promote robotics, and robotics.
for humans.2
increase in the robotics Rise in robotics start-ups:
Mining: An Australian– and automation start-ups, Increase in the number of
British mining group — the annual shipments of robotic start-ups in several
one of the world’s largest multipurpose industrial robots segments is also changing
mining corporations — has in India increased 27 per cent the country’s nascent
deployed driverless trucks in 2016 to reach a new record hardware ecosystem.
and unmanned drilling rigs of 2,627 units.7
and trains for its mining Government initiatives:
operations in Western 1. Worldwide Robotics Market to touch USD147.26 The Indian government’s
Australia.3 The group is Billion by 2025, Globe Newswire, 24 October 2017 efforts towards promoting
also expected to deploy 2. Robot wars! Russia unveil humanoid supersoldier
called ‘Iron Man’ as terrifying new weapon, Mirror,
digitisation of processes and
robots for mining ore from 27 May 2016 skilling people in robotics
nearly 7,000 feet below the 3. Rio Tinto puts its faith in driverless trucks, trains
and drilling rigs, The Economist, 7 December 2017
and Artificial Intelligence
Earth’s surface, mine it at 4. These Are The Robots That Will Mine In Hell, (AI) through its ‘Digital India’
temperature of about 175 Forbes, 14 July 2017
programme are likely to
5. Meet the first-ever robot citizen - a humanoid
degrees Fahrenheit and named Sophia that once said it would ‘destroy boost adoption of robotics
transport it to the surface.4 humans‘, Business Insider, 27 October 2017 in India. In January 2018, the
6. Automation boom: India’s surgical robotics market
to grow 5 times by 2025, Business Standard, 27 government also announced
January 2018 its plans to launch ‘Make in
7. Executive Summary World Robotics 2017
Industrial Robots, International Federation of India 2.0’ that would focus on
Robotics futuristic segments such as
8. 8Future focus: Make in India 2.0 to stress on
robotics, genomics, The Economic Times, 12
robotics and genomics.8
January 2018
_^kh The adoption of robotics is

a step up in the direction of
Apart from more machinery creating a digital workforce.
parts being welded and floors This may also lead to
being swept by robots, the reducing costs and driving
new age robots have evolved Banking:
new strategic advantages.
to help us in executing tasks A humanoid robot, In addition, there would be
that involve the left (logical) equipped with face challenges related to adoption
half the brain. It’s time for recognition and cost, redesigning business
humans to work on re-skilling autonomous navigation models, recruitment,
themselves with a focus on the features is operational in redeployment of workers and
right (creative) half of the brain. one of the branches of a training them the desired skill
leading Indian bank.10 sets.
Jayakrishnan T
CEO
Asimov Robotics High cost
The high cost of robots,
primarily due to expensive
imported hardware
Market opportunities and components, is one of the
Defence:
key sectors impacted barriers for adoption of
The Indian Army has robotics
With the Indian already been using a
government’s continued remotely operated vehicle
focus on promoting digital for locating and handling Technology complexity
culture in the country, explosive devices. In While current technologies
futuristic technologies August 2017, a proposal develop newer capabilities,
such as robotics are likely from the Army of businesses and consumers
to have a promising future deploying 544 robots in are likely to face integration
ahead. the field was approved by and complexity challenges
the defence ministry.11
Trying to keep pace with the
growing adoption of futuristic
Skill gap
technologies, organisations
in India are also investing Availability of skilled talent
significantly in robotics. is another challenge that
From autonomous shop is hampering the growth
floors to hi-tech robot-driven of robotics in the country
surgeries, below are a few Healthcare:
examples of sectors that
India currently has over 50 Acceptability
have adopted robotics to
enhance their efficiency. surgical robots and a pool The fear of getting replaced
of over 300 trained robotic and losing jobs may create
surgeons that perform hindrance in widespread
about 700 surgeries per acceptance of robots in
month.12 India
Challenges Way forward

Automotive industry:
India’s largest carmaker High cost of adoption Despite certain challenges,
has deployed about 5,000 along with unavailability of robotics in India is poised
robots that perform tasks skilled talent are amongst for a bright future and is
such as welding on its the key obstacles to the expected to transform the
shop floor.9 growth of robotics in the way things are done in
country. industries. With the advent
of Industry 4.0 and the
global trend of adopting
9. Robots sweep across Maruti Suzuki’s shop floor, 11. Indian Army Is Planning To Deploy 544 Robots automation, robotics is fast
Live Mint, 9 May 2017 To Fight Terrorists In Jammu and Kashmir, India
Times, 12 August 2017 entering into various sectors
10. Mitra and Candi: The robots who take care
of consumers at Canara Bank in Bengaluru, 12. India can become second largest market for in the country.
Hindustan Times, 22 September 2017 robotic surgery, The Economic Times, 19
November 2017
Digital payments going mainstream
Faceless, paperless and payments company everyday transactions have

cashless — new phase of becomes a powerful increased manifold. However,
digital payments in India customer acquisition the survey further reveals
partner. These could that currently the inclination
Disruption in payments
be for products, digital towards digital payments is
is inevitable due to the
classifieds, bill payments, more amongst consumers of
growing interest towards
ticket booking etc. higher income households.
digital channel across all
demographics in India Supply factors: There
Adoption drivers
has been an influx of next-
The year 2016 was marked
The Indian payments generation payments
by the demonetisation
sector is in the midst of platforms such as mobile
move which paved way for
rapid innovation that has wallets, BharatQR and
the most exciting times for
been embraced to the Unified Payments Interface
digital payments in India.
mass market, leading to an (UPI). With growing adoption
While demonetisation was
increase in adoption. Some of these platforms, the
definitely the highlight,
of the factors that are driving government, incumbents and
other government initiatives
this spectacular adoption fintech players are all working
such as introduction of
of digital payments are as
Aadhaar-based KYC, launch
follows:
of the Bharat Interface for
Monday (BHIM) application,
commercialisation of mobile
internet, and identification of Demand factors Supply factors
fintech under the regulatory Need for quick, secure Influx of next-generation
purview were other and innovative payment payment platforms from
milestones that ensured that solutions as part of the government, fintech
digital-cash is inevitable. the daily life and while players and incumbents
conducting business
Electronic transactions*,
transactions
by value, grew by 25 per
cent YoY in February 20181.
UPI grew 904 per cent in
transaction value between
February 2017 and February
2018.2
Push factors Pull factors
The digital payments
Demonetisation of high- Value deals; speed of
ecosystem is expected to
value currency along with transactions; online
be a significant contributor
launch of UPI and BHIM payments for shopping
to the internet business in
and entertainment; online
the coming years across two
utility payments
important factors:
• It brings in a newer
dimension- the digital
financial profile of Demand factors: As per a to create a collaborative
customers, providing a recent survey conducted by ecosystem that would help
new set of information YouGov, 78 per cent3 Indians address concerns such
regarding the customer on are keen to embrace new as trust and security, and
the spending avenues, size forms of digital payments. provide seamless cashless
of spend, modes and other Consumers today are digitally touchpoints.
preferences empowered, hyper-connected
• The payments ecosystem and better informed. As a
itself forms a powerful result, their expectations 1,2,
Electronic payment systems, RBI, accessed on
channel for consumer for a secured and simplified 4 May 2018
businesses, where the payment interface for 3. Indian consumers keen to adopt to digital
payment solutions, Business Line, 14 November
2017
Push factors: The Indian payment solutions to

government and National consumers.
Payments Council of India
The wave of digital payments Collaboration and
(NPCI) have taken significant
has just started in the country. interoperability: With
steps in pushing digital
Tide is rising not just from consumers engraving digital
payments with an aim of
e-commerce but all other payments even in their utility
turning India into a cashless
essential segments such as payments and lifestyle,
economy. The government
tax payments, education, interoperability between
initiated demonetisation
government payments etc. wallets is the next wave that
of high-value currency in
Further, UPI will soon become is awaited. Currently many
November 2016 as the first
mainstream payment option users pay their electricity bills
bold step to curb supply of
by consumers and will bring online, a trend that was not
cash, and then also levelled
down cost of digital transaction. very mature about a year ago.
the cash-crunch situation by
launching BHIM and UPI, and Digital payments is also going Government support:
formally promoting fintech to solve credit access problem Private players, telecom
players in its addresses to in the country. Banks and giants and government are
the nation. Digital payments fintechs will be able to provide joining forces to enhance
are also being promoted credit based on digital footprints cyber security in the digital
to make financial services of the consumers and with payment ecosystem.
available and affordable in the more confidence. Further,
rural areas. GST and invoice data will help Challenges towards
Small and medium enterprises building a world-class
Pull factors: Freebies, (SMEs) easier access to capital. digital payment ecosystem
cash-backs, and value-deals
are the most common Lack of security, lack of
pull elements of digital Jitendra Gupta infrastructure and lack
payments especially from Founder - Citrus Pay of awareness are major
fintech players. Plans to MD - PayU India challenges towards
incentivise BHIM and Bharat adoption of digital
Bill Payment System (BBPS) payments.
are also on the cards4. The India is still a highly cash-
speed at which transactions Business implications of
trapped economy compared
are completed is the second digital payments going
to most of the global
pull factor. Many consumers mainstream
counterparts. The cash to
are still in awe of this feature GDP ratio is approximately
Less number of
and are excited using it. 18 per cent7, compared
middlemen: Online
Successful establishment to some of the developed
payments create a direct link
of online retail and online nations that feature between
between businesses and
payment gateways for 3–8 per cent. Additionally,
consumers, eliminating the
most utility payments are non-cash transactions* in
need for existence of number
other factors that pull users India was about 11 billion in
of middlemen.
towards the digital payments 2017 — about 2 per cent of
ecosystem. Partnerships across the
global non-cash transactions
value chain: There continues
recorded in 20178. Some
to be partnerships between
of the challenges that India
big and small organisations
faces in this space are as
to provide consumers
4. Govt to incentivise online payments to push follows:
digital transactions, Hindustan Times, 09 multiple choice of platforms
November 2017 for using digital payments. 1. Security issues: A number
5. UPI live banks, NPCI website accessed on 14
February 2018
UPI5 and BHIM6 now have of consumers are still wary
6. BHIM partners, BHIM website accessed on 14 over 60 banks live on their of security issues in digital
February 2018
networks and are also being payments. Giving a formal
7. India Could Have a World-Class Digital Payments
Market, Investopedia, 16 November 2016 supported by a number of introduction to fintech
8. World Payments Report, 2017, Capgemini eminent fintech players and by the government has
*Note: Electronic transactions or non-cash wallets. Additionally, banks helped lift some of these
transactions refers to Real time gross settlement
(RTGS), National electronic funds transfer (NEFT), are launching their own reservations
Cheque truncation system (CTS), Immediate
mobile wallet applications
payment service (IMPS), National automated 2. Awareness: People in
clearing house (NACH), Unified Payments Interface and partnering with fintech
(UPI), Unstructured Supplementary Service Data India are cautious about
(USSD), debit and credit cards at PoS, Prepaid players to provide innovative
payment instrument (PPI), mobile bankin using digital payments due
to lack of awareness and With influx of wallets, UPI is 3. Customer acquisition for
financial illiteracy. As the likely to become the face of other business: Payment
next step in promoting digital payments in India as companies are graduating
digital payments, the it focusses on consolidation to becoming channels for
Directorate of Advertising and interoperability. customer acquisition as
and Visual Publicity Government initiatives well as behaviour analysis.
(DAVP) of the Ministry are giving due impetus to
4. Digital voucher business
of Information and promote e-payments within
for safe transactions:
Broadcasting (MIB) and the country. Two key areas
There is an increasing
Ministry of Electronics and where digital payments are
need by customers
Information Technology less explored and have high
to not use their credit
(MEITY)9 are working on opportunity are:
card or internet banking
plans to start promotion of
1. Corporate e-payments: while transacting with
digital payments.
Emerging technologies international websites/
3. Infrastructure: Apart such as blockchain are gaming websites etc.
from the multi-national likely to revolutionise the were the trust on the
brands in malls and the B2B and international platform is relatively
urban population, many payments markets. lower. On demand digital
retailers and consumers, Private players support vouchers is expected to
still prefer traditional international B2B be the next wave for such
payment methods due to payments, and have transactions.
the lack of infrastructure. started entering this
With rapid usage of
Many shops are yet to market, especially for
mobile and higher internet
have their bank accounts Micro, Small and Medium
penetration, digital payments
which are imperative for Enterprises (MSMEs).
would become a front runner
digital payments. The
2. Rural penetration: for all businesses. The
government is working
Initiatives such as market is gearing up with
towards building smart
Payments Bank and newer types of Point of Sale
cities and also promoting
players with rural market (PoS) systems and devices,
financial inclusion —
target are likely to drive which are contactless,
steps which would
deeper penetration of Aadhaar-based and QR code-
help businesses and
digital payments in rural based. Additionally, foreign
consumers shift from cash
and semi-urban areas. players are likely to explore
to e-payments.
this growing opportunity in
the Indian market.
UPI is the world’s most advanced payment system. Its concept of a virtual payment address makes
it easy to send money, as easy as sending an email, and it does so in real time. Which is why we
saw government launching BHIM, Google launching Google Tez, Flipkart launching PhonePe, with
other players like Paytm and more recently WhatsApp joining the bandwagon. Today, UPI has done
more transactions in 18 months than credit cards have done in 18 years. I expect by December of
2018, UPI alone will do one billion transactions.
Nandan Nilekani
Chairman
UIDAI @ Kalaari Summit’18
9. Govt likely to launch 2nd phase of promoting payment service (IMPS), National automated
digital payments, Live Mint, 07 November 2017 clearing house (NACH), Unified Payments Interface
*Note: Electronic transactions or non-cash (UPI), Unstructured Supplementary Service Data
transactions refers to Real time gross settlement (USSD), debit and credit cards at PoS, Prepaid
(RTGS), National electronic funds transfer (NEFT), payment instrument (PPI), mobile banking
Cheque truncation system (CTS), Immediate
Frontier-tech solutions like AI, ML and

blockchain likely to gain precedence
The beginning of a deep inclined. As per a recent retail (both online and offline)
tech era study in 2018, organisations are early adopters of AI and
would strive to improve their machine learning technologies,
Organisations are now
understanding of what AI is with several firms already
expanding their horizons to
best suited for, and how it automating operational
capture, manage and derive
can be deployed. Advances processes leading to cost
valuable insights using deep
in virtual assistants and deep reduction and faster turnaround
data led tech.
learning would foster adoption time.
As businesses worldwide of artificial intelligence1.
Similarly, block chain is also
continue efforts to expand
gaining traction, with banks
data capture and storing Adoption of deep tech in
in India experimenting with
the exponential amount India
the new technology. The
of information across the
AI-powered systems are technology is not just limited
organisational value chain
expected to be mainstream, to financial transactions, but
- research & development,
as major Indian industry also applicable in several
marketing and sales,
verticals are experimenting other fields and has great
production systems, sensors
with these deep potential for areas such as
and applications across
technologies. addressing real estate, new
the supply chain, etc., the
voting systems, revamped
information can be leveraged India is one of the fastest
public benefit and distribution
in ways hitherto largely growing economies and one of
systems building new levels of
unexplored. With rapid the fastest growing technology
trust and transparency.
sophistication in machine and markets in the world. This
deep learning algorithms, opportunity is driven in part The other significant trend
these large data pools can by the Indian government’s is the dematerialization or
be processed to generate ambitious digital transformation miniaturisation of these
meaningful insights. The projects such as ‘Digital India’, technologies thus allowing it
availability of large amount of apart from enabling increased to get embedded into mobile,
data to train these algorithms opportunities for private sector sensors, existing machinery
has been a clarion call for to transform as well. This is morphing into new avatars of
industry to pave the way for translating into increasing digital labour, an amalgamation
more intelligence and decision adoption of emerging of strong processing power,
making reliance on business technologies especially artificial artificial intelligence, natural
systems and applications. intelligence, machine learning language processing and
and blockchain across almost exponential data growth.
Organisations across various
all industries.
industries are adopting deep From software robots to
technologies to improve Indian enterprises across sophisticated cognitive
consumer experience (CX), industries including retail, systems, advances in these
generate revenue opportunities Banking, Financial services automation technologies are
and drive operational efficiency and Insurance (BFSI), IT-BPM, changing the game, reducing
through warehousing automotive, manufacturing, costs in some areas while
(automated retrieval systems), agriculture and healthcare improving speed, accuracy,
hub and spoke models have already accelerated the quality, and control.
(where to form clusters for adoption of these frontier
delivery) and more to ensure technologies and are starting
unit economics are positively to reap benefits. BFSI and
1. 2018 Will Mark the Beginning of AI

Democratization, Gartner, 19 December 2017
Drivers of adoption In addition to this, the programme on AI, mission

government has been quite on cyber-physical systems
The key factors which are
proactive to announce the supporting the establishment
fuelling the growth of deep
adoption of next-generation of centres of excellence, and
technologies are identified as
technologies that can bring allocation of INR3,073 crore
follows:
the economy on a par with on Digital India programme in
The Indian firms are adopting developed countries in terms 2018–19.3
deep-tech-related technologies of becoming a digital economy.
to improve business The recently announced Union
efficiencies, reduce operational Budget 2018-19 emphasised
cost and increase profitability, on using leading technologies
increase employee productivity in digital space to augur India’s
and obtain faster innovation ambition to have a digital
cycles. society. It proposed a national
Artificial intelligence (AI) with the latest breakthrough from deep learning (DL) has made
it possible for the very first time for software to write software. AI has the promise to
exponentially transform healthcare, transportation, agriculture, education and bridge
language barriers in India. In healthcare, AI will revolutionise transportation by reducing
accidents, improving the productivity of trucking and taxi services and will enable new
mobility services. Adoption of AI will bridge language barrier by applying this technology to
respond to spoken words, translate speech or text to another language.
Vishal Dhupar
Managing Director
Asia South NVIDIA
Market opportunities
As the Indian public and private sector focusses on the adoption of next generation
technologies, the demand for advanced AI-related technologies would also grow
enormously in the near future, creating an opportunity for start-ups and tech players to
provide innovative products and services.
Rise in start-ups to offer Global and Indian firms Indian IT firms offering
deep tech backing up AI-based various products and
start-ups: Many leading services based on
• A number of start-ups
international and Indian deep tech: Major Indian
have increased their focus
technology players, and organisations have launched
on technologies such as
venture capitalists firms are their AI-based platforms and
AI, ML and blockchain; AI
readily investing in India- are further investing into
focussed start-ups grew 75
based start-ups focussing strengthening their portfolio.
per cent in 20162
on artificial intelligence and These leading players have
• Indian government’s machine learning space. launched their standalone
initiatives such as ‘Make products to monetise global
in India’ and ‘Start-up India’ and local AI market.
have further supported
AI start-ups growth
ecosystem in the country.
2. Artificial Intelligence is now the hottest tech 3. Govt doubles Digital India allocation to ₹3,073
spot and startups in India are working on its crore; telecom sector disappointed, Business
cutting edge, Financial Express, 20 November Line, 1 February 2018
2017
Challenges Way forward
Just like we did for IT Services, Challenges such as the high Deep tech adoption in
India has an opportunity cost of implementation, India is picking up pace
to become the world’s cyber security concerns and we expect increased
leading provider of business and legal privacy are having adoption across all major
automation. AI was first implications on the deep industry verticals with
widely adopted by the large tech journey. retail, auto, manufacturing,
B2C companies, and has healthcare, IT-BPM and BFSI
Talent crunch is the other
now moved to B2B. The large organisations leading the
challenge as a lot of
opportunity for India to become pack in India.
this technology requires
a global leader is in Citizen multifunctional individuals In the next five years, rapid
AI. India can be a pioneer in who have a sectoral focus adoption and silent embedding
building massively scaled AI coupled with technology. This of deep tech in various
capabilities that improve the may, in the future, be another business applications and
lives of over a Billion people. major opportunity within the processes is likely, especially
education sector. in standardised rule based
Atul Batra process operations. Deep tech
CTO would add to the bottom line
Manthan by automating processes and
creating better, faster always
on service options for almost
all sectors. Some firms have
already deployed Chatbots,
80%
Indian CEOs plan to invest in
voice assistants and image
recognition/analysis etc.,
technologies and have started
to reap benefits. To provide
cognitive technologies, including
artificial intelligence and machine
better and personalised
learning, over the next three years consumer experiences while
— KPMG India CEO Outlook 2017 interacting with organisations,
adoption of new technologies
is likely to increase further.
Retail and BFSI:
Increase efficiency
in sales and Artificial
marketing function Intelligence Healthcare:
AI powered
robots will learn
Finance: to anticipate
Compliance diseases
and fraud Self learning
detection with AI Deep learning Auto:
implementation Improving
consistency
in decision
Use of bots and making
voice assistants Voice assistants
to improve
Chatbots
overall consumer
experience Machine learning
Performing
prescriptive Predictive analytics
analytics Robotics process automation
Big data
DEEP TECH PYRAMID

Annexure - Our methodology
The premise of this I. Survey To support the survey

report is based on several Ten trends were shortlisted data, Kalaari Capital further
discussions, meetings and in this report based on a provided insights gained
brainstorming sessions that survey conducted in India in from top executives of
were conducted by Kalaari January 2018. About 1178 some renowned Indian
Capital, YourStory, NASSCOM respondents participated in organisations. The responses
and KPMG in India between the survey held on YourStory from a range of sectors
December 2017 and January and NASSCOM platforms. include, but not limited to,
2018. A total of 20 internet The graph below indicates financial services, consumer
trends were identified that the results of rankings based products, healthcare,
could shape the Indian on public opinion of the technology and retail.
business industry, going survey.
forward. II. Discussion with
experts
Besides external validation,
Survey result 1 Kalaari Capital has also
organised an event in
‘Mobile-first’ consumption for
media, gaming and entertainment Bengaluru that was attended
generating significant avenues by 100 top executives from
for consumer outreach and 4.2
engagement some of the well-known
Indian organisations. Inputs
Digital payments going 4.1 were sought via a live polling
mainstream
application and face-to-face
Frontier-tech solutions like
4.0 interactions.
AI, ML and blockchain likely
to gain precedence
Digital future lies in the III. Secondary research
Indian language internet 4.0
users Lastly, the industry experts
at KPMG in India conducted
Rise of social and content
based commerce 3.9 a detailed secondary
research for each of the
Ecosystem creation by internet ten trends. The team
business players to increase 3.8
monetisation avenues relied on organisation’s
Emergence of proprietary databases and
‘alternate commerce’
3.7 public websites to deep
Emerging sectors – dive into the local trends
Health-tech, Agri-tech & 3.7 and understand the current
Ed-tech
scenario of the Indian
Emergence of Indian brands market. We also referred
accelerated through digital 3.6
platforms several KPMG in India reports
that were published in the
Robotics pushing 3.6
boundaries past to help conclude on the
trends.
Emergence of 3.6
enterprise tech
Rise of 3D printing 3.6
Electric and hybrid Vehicles

disrupting the automotive 3.4
sector
Revival of Food-tech 3.3

1. KPMG in India, NASSCOM, Kalaari and
YourStory digital trends survey 2018
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated
with KPMG International Cooperative (“KPMG International”), a
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMGSwiss
network of independent
entity. member firms affiliated with KPMG International Cooperative (“KPMG International”), a
All rights reserved
Acknowledgement
Kalaari Capital NASSCOM YourStory KPMG in India

Vani Kola KS Viswanathan Shradha Sharma Sreedhar Prasad
Anuj Mehta Suresh Jayaraju Suma Ramachandran Ankur Nigam
Siddhanth Jayaram Kritika Murugesan Nileena G.S. Abhijit Varma
Jaya Sinha Dola Samanta Mohit Bahri
Saravanan Aditya Ranade Puneet Tandon
Sundramurthy
Vincent Arthur Ankit Arora
Rukmangada Raja Ankur Khaitan
Praveen Kumar Shreya Bapna
Niranjan M Nisha Fernandes
Rashmi Chotia Darshini Shah
About KPMG in India

KPMG in India, a professional KPMG has offices across India We strive to provide rapid,
services firm, is the Indian in Ahmedabad, Bengaluru, performance-based, industry-
member firm affiliated with Chandigarh, Chennai, focussed and technology-
KPMG International and was Gurugram, Hyderabad, Jaipur, enabled services, which
established in September 1993. Kochi, Kolkata, Mumbai, Noida, reflect a shared knowledge of
Our professionals leverage Pune and Vadodara. global and local industries and
the global network of firms, our experience of the Indian
KPMG in India offers services
providing detailed knowledge business environment.
to national and international
of local laws, regulations,
clients in India across sectors. KPMG.com/in
markets and competition.
About NASSCOM
NASSCOM, a not-for-profit Established in 1988, NASSCOM is focused on
industry association, is the NASSCOM’s relentless pursuit building the architecture
apex body for the 154 billion has been to constantly support integral to the development
dollar IT BPM industry in India, the IT BPM industry in India, of the IT BPM sector through
an industry that has made in the latter’s continued policy advocacy, and help
a phenomenal contribution journey towards seeking in setting up the strategic
to India’s GDP, exports, trust and respect from varied direction for the sector to
employment, infrastructure and stakeholders, even as it unleash its potential and
global visibility. reorients itself time and again dominate newer frontiers.
to remain innovative, without
ever losing its humane and
friendly touch.
About YourStory
YourStory is India’s no. 1 nearly 75,000 stories of Founder and CEO Shradha
media tech platform for entrepreneurs, innovators Sharma has won several
entrepreneurs, dedicated to and change-makers. This awards for her work in media,
championing and promoting rich repository of content entrepreneurship, women’s
India’s entrepreneurial is available in English and leadership and other allied
ecosystem. As the pioneer major Indian languages, as areas. She has featured in
of telling the stories of well as in German via YS Fortune’s 40 under 40 for three
entrepreneurs’ dreams, Germany. YourStory has also straight years and has been
struggles, failures and provided business networking a top LinkedIn influencer the
successes, it is the definitive opportunities to over 65,000 digital media space. Investors
voice of startup trends in India entrepreneurs through the in YourStory include Kalaari
and the most sought-after various conferences and Capital, Ratan Tata and UC
platform for visibility. meetups it holds across the Berkeley, Qualcomm Ventures,
country, such as TechSparks and T V Mohandas Pai.
Founded in 2008, yourstory.
and Mobile Sparks.
com has published
About Kalaari Capital

Kalaari Capital is an early- have empowered visionary with capital, we focus on a
stage, technology-focused entrepreneurs building long-term partnership with
venture capital firm with unique solutions that reshape entrepreneurs to help unlock
$650 million in assets under the way Indians live, work, large value through disruptive
management. Since 2006, we consume and transact. Along innovation.
KPMG in India contacts: YourStory contacts:
Mritunjay Kapur Shradha Sharma
National Head Founder and CEO
Markets and Strategy T: +91 80 4657 3636
Head E: shradha@yourstory.com
Technology, Media and Telecom
T: +91 124 307 4797 Suma Ramachandran
E: mritunjay@kpmg.com Head of Content Strategy
T: +91 98807 46353
Sreedhar Prasad E: suma@yourstory.com
Partner and Head
Consumer Markets & Internet Business, Advisory Nileena G.S.
T: +91 80306 54055 Founder’s Office
E: sreedharprasad@kpmg.com T: +91 94005-52375
E: nileena@yourstory.com
Ankur Nigam
Partner
Deal Advisory
T: +91 124 334 5213
E: ankurnigam@kpmg.com
NASSCOM contacts: Kalaari Capital contacts:

KS Viswanathan Vani Kola
Vice President, Industry Initiatives Managing Director
T: +91-80-4169-3926 T : +91 80 6715 9600
E: ksv@nasscom.in E : vani@kalaari.com
Suresh Jayaraju Anuj Mehta

Senior Director and Head Fellow, Kstart
10,000 Startups T : +91 97697 22089
T: +91 80 4169 3924 E : anujm@kstartcapital.com
E: suresh@nasscom.in
Siddhanth Jayaram
Kritika Murugesan Fellow, Kstart
Director and Head of Operations T : +91 95353 25097
T: +91 99801 40269 E : siddhanthj@kstartcapital.com
E: kritika@nasscom.in
Follow us on:
kpmg.com/in/socialmedia
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accu-
rate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should
act on such information without appropriate professional advice after a thorough examination of the particular situation.
The views and opinions expressed herein are those of the persons quoted and do not necessarily represent the views and opinions of KPMG in India.
© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. All rights reserved.
The KPMG name and logo are registered trademarks or trademarks of KPMG International.
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#IndiaTrends2018:

Trends shaping Digital India

01 ‘Mobile-first’ consumption for media, gaming and 03

02 Digital future lies in the Indian language internet users 06

03 Rise of social and content-based commerce 09

04 Ecosystem creation by internet business players to increase 12

06a Health-tech: Leveraging technology to enhance healthcare 17

06b Agri-tech: Enabling a new green revolution 19

06c Ed-tech: ‘E-Learn India’ – Digitally innovative learning for 23

07 Emergence of Indian brands accelerated through digital 26

08 Robotics pushing boundaries 28

09 Digital payments going mainstream 30

10 Frontier-tech solutions like Artificial Intelligence (AI), Machine 33

1. India tops list of countries where people ‘can’t live

Emergence of Indian Ecosystem creation

‘Mobile-first’ consumption for media,

Increasing number of Some of the key drivers Figure 1: Business models in

Digital’s future lies in the Indian language

A gamut of factors are Conducive government A number of categories

While people in metro cities Devices

The trend of multilingualism Way forward

Rise of social and content based

Social commerce – an In India, the increasing

Key categories where

Several market places have Financial investments for

Ecosystem creation by internet business

Ecosystems — a new Business ecosystems

Growth drivers assisting

From sites to systems — • E-services: Major subscriptions, email marketing,

Technical and Big data management: High investments:

Emergence of ‘alternate commerce’

The e-commerce and Despite its significant

Key enabler driving this

4. 63 million people living in rural India do not have

Beginning of a digital era Technology adoption in Technologies empowering

Digital channels used by

Opportunities for Online appointments and Advanced hair care, Maternity

Agri-tech — emergence of Rise of start-up ecosystem:

Reforming agriculture using

Fintech platforms Farming-as-a-Service E-commerce and market

Nano technology IoT and big data Post harvest technologies

Smart machines Precision farming

Market opportunities in is expected to cross USD5 10 per cent (USD313 million)

Some of the key Agri-tech solutions

Furthermore, India’s distributed across the

10. Agri-tech India 2018, Agri-tech India, accessed on 8 February 2018;

Technology is enabling the Market size1,3

Growth drivers Role of the government: From

Business opportunities Challenges:

Emergence of Indian brands accelerated

Rise of online brands, Indian brands embracing

Major brands around the Consumers are now looking

Factors fuelling growth of Market opportunities and Challenges faced

Robotics pushing boundaries

The convergence of emerging Autonomous vehicles: Tech Factors fuelling this

_^kh The adoption of robotics is

Challenges Way forward

Digital payments going mainstream

Faceless, paperless and payments company everyday transactions have

Push factors: The Indian payment solutions to

Frontier-tech solutions like AI, ML and

1. 2018 Will Mark the Beginning of AI

Drivers of adoption In addition to this, the programme on AI, mission

Challenges Way forward