E-commerce

India’s digital marketplaces are growing by going smaller

Pranav Balakrishnan

October 24, 2025 | 6 Min Read

From Meesho’s zero-commission model to ride-hailing’s latest experiments, the next phase of growth, and even profits, in digital commerce may lie in serving smaller-ticket users—not chasing higher-value ones.

The first generation of digital marketplaces in India followed a simple playbook: attract consumers and sellers with steep discounts and generous incentives, get them hooked, and then gradually taper the freebies. The revenue model was just as straightforward: take a commission of about 20–30% on every transaction.

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