E-commerce GMV set to cross ₹1.15 trn, grow 20% in festive season: Redseer

India’s e-commerce sector is projected to expand by 20-25 per cent, with gross merchandise value (GMV) during the 2025 festive season expected to cross ₹1.15 trillion, according to a report by consulting firm Redseer.

 

The study attributes the momentum to a combination of factors like lower borrowing costs following repo rate cuts, pent up demand, higher disposable incomes, and improved rural earnings.

 

"Consumer traffic across the platforms has been on the rise, indicating greater anticipation for the upcoming festive period, with consumers increasingly displaying interest towards festive-related products & deals," the report noted.

 

 

Quick commerce a big player

 

Quick commerce and value-led platforms are expected to play a bigger role in festive shopping, with Redseer estimating growth of around 150 per cent and 30-35 per cent, respectively in the pre-festive period.

 

Buzzing sectors

 

Fashion, beauty, and home categories are projected to sustain growth above 20 per cent, contributing a significant amount to the overall sales. The report further noted that mobiles and electronics category will also witness a spike of around 10 per cent.

 

Grocery sales are expected to expand sharply, aided by the rapid adoption of quick commerce.

 

Horizontal platforms (Flipkart, Amazon) will continue to drive close to two-thirds of festive transactions, while vertical and niche models maintain steady growth, the report added.

 

It stated that upcoming reforms to the Goods and Services Tax (GST) structure, with 5 per cent and 18 per cent rate, could defer some large-ticket purchases until after Diwali. However, the broader effect on annual consumption is expected to be positive.

 

Overall, India’s e-commerce market could end calendar year 2025 with annual growth of 17-22 per cent, the highest in the past three years. 

 

Hiring pump

 

In preparation for rising festive demand, several platforms are ramping up hiring. Flipkart announced it will add over 220,000 seasonal roles across its supply chain as the Walmart-owned retailer gears up for the peak shopping period. The firm is also scaling its workforce, infrastructure, and technology across all 28 states, with particular emphasis on last-mile logistics and delivery efficiency.