 Tue, Apr 19, 2022 | Updated 06:16 IST
The Pandemic Has Accelerated Growth in
the Digital Space, Says Siddharth Mehta,
Former Director, IL&FS
at Mar 30, 2022
Mumbai (Maharashtra) [India], March 30 (ANI/BusinessWire India):
Siddharth Mehta IL&FS Former Director and currently Founder and
CIO of Bay Capital believes that "Businesses will need to think 'digital'
if they are to compete and grow over the next decade."
Siddharth Mehta is very excited about investing in the Indian market
rather than any other emerging and developed one. Because India has
seen a tremendous increase in the overall penetration of the internet
owing to strong growth in low-cost smartphones, a signi cant
reduction in data prices, the creation of an ecosystem of products and
services driven by the government's digital initiatives, and the
development of low cost, robust payment systems. Today, there are
over 758 Mn internet users in India with ~700 Mn smartphones. In fact,
the average data consumption per user per month in India is the
highest in the world at ~13.5 GB and Indians spend almost 6.5 hours
per day online.
Talking about its initiation towards being digital and its impact on the
market is tremendous. Over the course of the last decade, India has laid
down the digital infrastructure pipelines - so much so, that today
Digital activity has become part of daily lives of over half the country
and has enabled India to circumvent the challenges posed by its poor
physical infrastructure. Be it bank accounts, KYCs, daily transactions,
accessing government services, education services, and even COVID
vaccinations, all of this is now digitally led in India. Just to put things
in perspective, India has the highest volume of real time payment
transactions with over 25 Bn transactions in 2020. China was next at
about 16 Bn transactions in 2020!
In such a scenario, it can be said that India is now on the path to
becoming the largest digitize business hub in less than twenty years.
COVID-19 also plays an essential role to help India in rolling out the
digitalization aspects. It has acted as an accelerator for the adoption of
the digital economy. In every sector and in every business aspect,
digital activity has become extremely important and relevant as this
was the only way for consumers to access products and services and for
businesses to operate.
Pandemic has accelerated growth in the digital space!
Siddharth Mehta founder and CIO of Bay Capital said that "The digital
transformation of India is only just accelerating, and we believe the
internet economy could grow 10x in 10 years from here on (to get to
more than USD 800 billion), resulting in many large businesses
accreting signi cant shareholder wealth. The nature and shape of the
Indian economy and nancial markets will be very different in 2030
than they are today."
Today, the digital ecosystem has evolved, and many segments have
consolidated with clear leaders emerging. Across the globe, the nature
of digital economy dictates that the consumer would tend to gravitate
towards fewer platforms. Within this, leadership businesses will end up
having far larger share of traf c, revenue as well as pro t pool! Many
large digital, consumer tech companies are already pro table on
EBITDA level and PAT pro ts look imminent. Quite a few of these
franchises plan to list in the next 12-24 months and will be very well
sought after by public market investors due to the growth and
pro tability pro le.
In the last 20 years, technology has leapfrogged signi cantly and digital
has become a part of our daily lives. With each passing moment,
consumer awareness and dependence on internet is only increasing and
this has led to rapid decline in customer acquisition costs and increased
the overall Life Time Value of the customer for digital businesses. The
impact of this has not been lost on the overall investment community
as well. Focusing on investment opportunities in India's internet/digital
ecosystem as a result of digital transformation, Siddharth Mehta of Bay
Capital has stated that "Yes, indeed, there are many outstanding
businesses that have created tremendous scale and are seeing their
paths to pro tability getting accelerated. We are particularly interested
in those businesses that are solving uniquely Indian problems in
uniquely Indian ways and those that are targeting the next billion
internet users in India."
The initiative towards Digital activities of several investors such as
Siddharth Mehta IL&FS Former Director will change the overall
scenario of digital transformation in business very dramatically in 3-5
years.
This story is provided by BusinessWire India. ANI will not be
responsible in any way for the content of this article.
(ANI/BusinessWire India)
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