5 Companies Leading the India Internet Economy Boom

India is undergoing a tremendous shift toward a digital world. Thanks to a government that chose to embrace and invest in a futurized world, the country’s digital public infrastructure, and the strides being made by innovative technology companies, India is shaping up to be the ideal Emerging Market for investors. 

As one of the world's fastest-growing major economies, India's GDP has seen significant upward trends, fueled by a young and tech-savvy population, increasing urbanization, and a rising middle class with higher disposable incomes. This economic boom is reflected in the thriving consumer market that is rapidly expanding and will not slow down any time soon. 

India has become a hotbed for innovative internet companies that are digitizing nearly all sectors of the economy for the first time. From e-commerce giants to fintech disruptors, these companies are not only reshaping the digital landscape but also contributing significantly to the economy. Among the fastest-growing are companies like Policybazaar, Zomato, and Nykaa, which have become household names for consumers and showcase the dynamic potential of India's internet economy. Yet, many U.S. investors have never heard of these companies, let alone invest in them.  

Here are just some of the leading internet companies in India at the forefront of this digital revolution: 

Policybazaar (PB Fintech) 

Policybazaar (also known as PB Fintech) is India's leading online insurance and financial services marketplace. Founded in 2008, the company revolutionized the traditional insurance sector in India by offering a digital platform for comparing and purchasing insurance policies, including life, health, motor, and travel insurance. Policybazaar provides users with detailed information, transparent pricing, and personalized options, enabling informed decision-making. It has partnerships with major insurance companies, ensuring a wide range of products. Additionally, Policybazaar offers financial products such as loans and credit cards. The company's user-friendly interface, comprehensive offerings, and customer-centric approach have made it a trusted name in India's fintech landscape. 

Policybazaar has over 11 million customers users in India as of recent data. In its most recent quarter, Policybazaar grew revenues by 30%.¹ 

MakeMyTrip 

MakeMyTrip is India's leading online travel company, founded in 2000. It is, in essence, the “Expedia of India.” It revolutionized the travel industry by providing a one-stop platform for all travel needs. MakeMyTrip offers comprehensive services, including flight bookings, hotel reservations, holiday packages, rail and bus tickets, and car rentals. The company ensures a seamless booking experience through its user-friendly website and mobile app, catering to both domestic and international travelers. With a wide network of partnerships and a customer-centric approach, MakeMyTrip provides competitive prices, diverse options, and customized travel solutions. Renowned for its innovation and reliability, MakeMyTrip has established itself as a trusted name in the Indian travel and tourism sector, continually enhancing the travel experience for millions of users. 

MakeMyTrip has a substantial user base, estimated to be in the range of 50 million active users. In its most recent quarter, MakeMyTrip grew revenues by 37%.² 

Zomato 

Zomato is a leading food delivery and restaurant discovery platform in India, founded in 2008.  It is the “Doordash and Yelp of India rolled into one.” It offers a comprehensive online service for ordering food from a wide range of restaurants, along with user reviews, ratings, and detailed menus. Zomato's platform, accessible via website and mobile app, allows users to explore dining options, make reservations, and access discounts and offers. The company partners with thousands of restaurants across India, ensuring a diverse culinary selection. Known for its fast delivery, efficient customer service, and user-friendly interface, Zomato has become a trusted and integral part of India's dining culture, continually enhancing the food discovery and delivery experience for millions of customers.  

As of 2024, Zomato has around 80 million monthly active users. The company's user base and revenue have been growing significantly over recent years. In its most recent quarter, Zomato grew revenues by 73%.³ 

Nykaa 

Nykaa is a leading beauty, wellness, and fashion e-commerce platform in India, founded in 2012 by Falguni Nayar. The company offers a comprehensive range of products, including cosmetics, skincare, haircare, fragrances, personal care, and fashion apparel. Nykaa operates through its user-friendly website and mobile app, providing customers with detailed product descriptions, reviews, and expert advice. It has partnered with numerous global and local brands, ensuring a diverse and high-quality product selection. Nykaa's success is driven by its innovative marketing strategies, extensive influencer collaborations, and customer-centric approach, making it a trusted name in the Indian beauty and fashion retail sector. 

As of 2024, Nykaa has approximately 20 million monthly active users. In its most recent quarter, Nykaa grew revenues by 28%.⁴ 

Indiamart 

IndiaMART is India’s largest online B2B marketplace, founded in 1996 by Dinesh Agarwal and Brijesh Agrawal. The platform connects buyers and suppliers across diverse industries, facilitating the exchange of goods and services. IndiaMART offers a comprehensive range of products, including electronics, machinery, apparel, and more. With its user-friendly website and mobile app, it provides detailed product listings, supplier profiles, and customer reviews, ensuring a transparent and efficient trading experience. The company leverages advanced technology to offer features like RFQ (Request for Quotation), payment protection, and logistics support. IndiaMART's extensive reach and commitment to enhancing business growth have made it a trusted and essential resource in the Indian business ecosystem. 

As of 2024, IndiaMART has approximately 24 million unique business inquiries and 214,000 paying suppliers on its platform. In its most recent quarter, Indiamart grew revenues by 21%.⁵ 

^{Investing in the Indian Internet Stocks}

Unfortunately, for those looking to invest in these Indian internet companies, most broad-based EM strategies are missing the mark. Due to database flaws and a lack of GICS classifications, Emerging Market internet companies often end up overlooked by investors and institutions alike. But the reality of the matter is that these tech giants deserve a moment in the spotlight as the stocks continue to outperform the broader market. For those interested in gaining exposure to the growth of the internet economy in India, INQQ The India Internet Index could be one way for investors to tap into the theme.

Sources:

^1-5 Bloomberg