Newsletter
India’s internet story is undergoing a shift.
For years, it was a nation of scrollers, people who came online to watch, chat, and pass time. But the latest data from 2025–26 suggests that India is finally learning how to spend online, not just scroll.
Let’s start with the scale.
India’s active internet user base crossed 950 million in 2025, reaching 958 million, according to the Internet in India Report 2025 prepared by IAMAI and Kantar.
At the very top of the funnel, consumption dominates. Over 700 million Indians watch or listen to OTT content. Around 650–670 million are active on social media or communication apps. In simple terms, almost everyone online is consuming something.
But as you move down the funnel, the numbers start shrinking. Roughly 480 million participate in some form of digital commerce. Around 400 million use digital payments. And only about 300–330 million actually shop online. Narrow it further, and just a tiny slice of around 18 million people are “power shoppers”. They place 50+ orders a year. That’s the real story: India has massive reach, but shallow monetisation.
However, this is exactly where things are beginning to change.
Take entertainment first. India had over a million digital video users in 2025, and connected TV users jumped to over 120 million, growing nearly 85% in a year. That means people are moving from passive mobile consumption to more immersive, premium viewing.
Then comes social media, which is evolving from attention to influence. India has nearly 500 million social media identities, but more importantly, 2–2.5 million creators are now actively monetising content. These creators are already influencing $350–400 billion worth of consumer spending. In other words, scrolling is no longer just a timepass, but it’s shaping what India buys.
In fact, India had over 270 million online shoppers in 2024, and the e-retail market is around $60 billion. But the real disruption is quick commerce.
Today, more than two-thirds of e-grocery orders already happen via 10–20 minute delivery platforms. Even in overall e-retail, quick commerce has started taking a meaningful share. The reason is simple: India may not shop frequently online, but when it does, it increasingly prefers instant gratification.
Geography is also rewriting the story. Nearly 60% of new online shoppers since 2020 have come from Tier-3 cities and beyond. This matters because India’s next 100–200 million users won’t look like the first wave. They will be more value-conscious, more vernacular, and increasingly comfortable transacting online thanks to simpler interfaces and better logistics.
But if there’s one layer that is accelerating everything, it’s digital payments.
UPI has gone from under 100 crore transactions annually a few years ago to over 13,000 crore transactions in FY24. By early 2026, it hit a staggering 22+ billion transactions in a single month.
Today, UPI accounts for roughly 80% of all digital payments in India, and over 90% of small merchants accept it. This is critical because payments are the bridge between scrolling and spending. The easier it becomes to pay, the easier it becomes to convert users into customers.
Even gaming and interactive media are joining this shift. India’s interactive media market is now close to $14 billion, powered by nearly 900 million smartphone users. New formats like micro-dramas and casual gaming are not just engaging users but also monetising their time in ways traditional content never could.
If you step back and look at everything together, the core idea still holds but with a twist. Yes, India is still a scrolling giant. Over 80% of users consume content, while a much smaller share shops online. But the gap between consumption and commerce is shrinking faster than ever before.
What we’re witnessing is a transition. The same user who came online to watch videos is now discovering products through creators, ordering groceries in 10 minutes, and paying instantly via UPI. The funnel is still wide at the top, but it’s no longer leaking as much at the bottom.
India isn’t just scrolling anymore. It’s slowly, but surely, learning how to transact.
