Shared economy at $2 bn by end-2020
Co-working, co-living, shared mobility, furniture rentals account for a chunk
The shared economy in India is estimated to be an about $2 billion industry by the end of the current year, according to a recent report by Maple Capital Advisors.
The ‘shared economy’ includes segments such as co-working (Awfis, WeWork India), co-living (Stanza Living, OYO Life, Oxford Caps), shared mobility (Uber, Ola, Shuttl) and furniture rental (Furlenco, Rentomojo.)
As per the report titled ‘Shared Economy — India Story,’ with high mobile penetration, high millennial concentration and an aspirational population, Asia has the highest willingness to use shared assets.
“India mirrors Asia trends in these aspects and is thus poised for high growth and adoption of shared services,” it added.
In 2019, the segment was estimated to be over $1.5 billion in size in India.
The market size for the co-working sector is pegged at $500 million, while that for co-living is estimated to be $400 million, shared mobility at over $630 million, and furniture rental at $200 million. The report noted that about $3.7 billion worth of capital has been infused in India in such services till now, adding that a similar amount is expected to be infused in the next couple of years.
“Given the growth, potential profitability and momentum, we expect significant IPOs and private funding in the next 2-3 years,” it added.
“India is at the cusp of a shared economy revolution. We are already witnessing phenomenal growth in this segment with both international companies and home-grown start-ups vying for market share. Even as the space is nascent, over $3.7 bn has been invested in this space and we expect this to accelerate from here, on the back of compelling demand and unit economics,” Pankaj Karna, MD, Maple Capital Advisors, said.
The report added, “In this era of growing concern on climate, wastage, resource scarcity and population intensity (especially in the developing world), the shared economy seems to be a sustainable, scalable and efficient form of addressing these concerns.”
Source: Read Full Article