The Indian e-commerce segment registered a whopping growth rate of 175 percent and reached $22 billion from $8 billion in 2020.
With the backing of global investors for e-commerce companies, India has become the second-largest global venture capital investment hub for digital shopping companies in 2021 after the US. The Indian e-commerce segment registered a whopping growth rate of 175 percent and reached $22 billion from $8 billion in 2020.
The US which attracted $51 billion in investments came first followed by China at third position with $14 billion and the UK at fourth position with $7 billion, according to the London & Partners analysis of Dealroom.co investment data.
The data also indicates that the US and India are two of the world's leading hubs for digital shopping companies with high levels of global investment and unicorns.
The reason for this kind of investment may be attributed to the increasing demand for online purchases during a series of lockdowns across the world during the Covid-19 pandemic.
Within India, Bengaluru was on top globally with $14 billion worth of Venture Capital (VC) investments in digital shopping in 2021, followed by Gurugram at No. 7 with $4 billion and Mumbai at No. 10 with $3 billion.
The report further shows that Bengaluru ranked number five among cities with the potential for future unicorns, just behind London.
Three of the 15 global cities with the highest count of current unicorns are in India Bengaluru at No. 6 with 19 unicorns in 2021 (up from three in 2020, Gurugram at No. 7 with 13 unicorns (up from 3 in 2020), and Mumbai at No. 14 with 7 unicorns.
London is the leading European hub for digital shopping investment, with a record $5 billion raised by digital shopping companies based in the capital in 2021.
Overall, global venture capital investment into digital shopping more than doubled in 2021 following a significant consumer shift to e-commerce platforms during the pandemic. The total global VC investment for 2021 stood at a record $140 billion, up from $68 billion in 2020.