Coupon Market in India 2021 - A Detailed Research

Summary

Hyper growth of E Commerce market is driving the demand of coupon in India.

Growing penetration of Internet & mobile is driving the digital coupon market in India.

Different Research has shown Indian consumers search more for online deals & coupons before making purchase decision.

Though majority of demand of coupon can be observed at top Indian cities but other Tier 1 & Tier 2 cities are also driving the demand for coupon in India significantly.

Overall Value of distributed Coupon in India is estimated to be USD 40.3 billion in 2021 & forecasted to grow to USD 124 billion in 2025, growing at a CAGR 20.6% during the forecasting period of 2021-27.

There are many coupon websites in India, offering various coupon & deals across various product categories. Currently market size of those platform is estimated to be USD 180 million & forecasted to grow to USD 429 million, growing at a CAGR of 15.6% during the forecasting period 2021-27.

Market Overview

Key Growth Driver - Increasing mobile penetration
Number of smartphone users in India

The number of smartphone users in India was estimated to reach over 760 million in 2021, with the number of smartphone users worldwide forecasted to exceed to 3.8 billion users in 2021.

With such high growth rate, India market is expected to contribute of almost 20% of global market.

Increasing penetration of mobile is expected to drive the E Commerce market in India which would also propel Coupon Market in India.

Key Growth Driver - Increasing Internet penetration
Internet penetration rate in India

Internet penetration rate in India went up to nearly around 45 percent in 2021, which means that nearly half of the population of 1.37 billion people had access to internet that year. This also ranked the country second in the world in terms of active internet users.

Such high rise of internet penetration is driving the demand of E Commerce market as well as online deal & coupon market in India.

Rise of E-Commerce Industry is driving the online/ Digital Coupon Market in India

Owing to the increasing internet user base and favorable market conditions, India has a lot of potential in the e-commerce industry. Growing at an exponential rate, the market value of the e-commerce industry in India was approximately 50 billion U.S dollars in 2018. This number was estimated to reach 200 billion U.S. dollars by 2027.

With e-commerce on the rise and more and more people getting the taste of buying things online, a large chunk of coupon market share is now attributed to digital coupons.

E-Commerce Market in India

Digital coupons today not only serve the purpose of deals and discounts, but they also help in increasing customer base, retaining old ones and increasing loyalty and brand building.

According to data release by Dealstreet, nearly 95 percent buyers search for deals online and 74 percent view the coupons available on couponing portals which indicates that Indians have higher demand for digital coupons

India: retail e-commerce revenue forecast (USD Billion)

The graph shows the e-commerce market revenue in India from 2017, until 2025. E-commerce revenue in India is expected to grow to $79.5 billion in 2025 from $18.2 billion in 2017.

The market has seen significant jump in 2020 due to lockdown & social distancing due to COVID-19. Such high growth of ecommerce market is expected to drive growth of Coupon Market in India.

India: retail e-commerce revenue forecast
Change in Demography composition among E Commerce Shoppers
Demography composition among E Commerce Shoppers
Change in Gender Demography among E Commerce Shoppers
Gender Demography among E Commerce Shoppers
Change in Age wise Demography composition among E Commerce Shoppers
Age wise Demography composition among E Commerce Shoppers

As per recent study by M&C Saatchi Performance on E Commerce customers in India, revels that most of the customers research before taking buying decision. 51% of the customers surveyed, spend time looking for best deals before purchase while 50% of survey respondents have mentioned to have used discount codes or coupons during online purchase.

Such data indicates the high preference for discount codes or coupons among Indian online shoppers which is good trend for coupon market for India.

Surge in search interest for discounts, coupons & offers Total search volume Jan 2020–June 2020 vs Jul 2020–Dec 2020

Reasons for high usage

As per the survey following are the reasons for such high usage of coupons:-

Saves Money – Applying coupon codes helps shoppers save money on their total bills.

Sharable – Shoppers can share coupon codes with their friends and family.

Easy to use – People can avail of coupons through subscriptions. They are readily available online allowing shoppers to use them at work, home, during the time they commute or whenever they see fit.

Most demanding coupon type

  • Electronics
  • Clothing
  • Health and Personal Care
  • Furniture and Home Décor
  • Dining
  • Groceries
  • Recharges
  • Cabs
Top Demanding Product Category for Coupon usage

Out of all segments, Fashion segment sees maximum usage of coupon followed by Electronics and Beauty, Health segment & Food & Dining. Shopping sites like Paytm, Uber, Snapdeal, Amazon, Jabong, Myntra, Ola, Bigbasket, Grofers etc. has been seeing rise in usage of coupon significantly.

Food delivery app Zomato, Swiggy has seen usage of coupon code for each of their orders which is quite high till 2019 but see sharp decrease in 2020 since people stopped or lower ordering for several month in 2020 due COVID-19 situation in India.

For past few years, online coupon codes are used most at Healthkart which saw further rise in 2020 due to social distancing & people find convenient & easiest way to order medicine through online.

Where Shoppers finds Coupons

It has been seen most of the deal & coupons has been discovered through coupon websites which plays a major role in popularization of E-coupon in India. Discovery through brands’s self websites such as Flipkart, Myntra, Zomato, Swiggy, Bigbasket etc also play a significant role since customers do not have to search outside platform & easy to use..

E-Coupons users Location

As per data analyzed from one coupon website Grabon, it is interesting to note that 51% users of E-coupon & online deals still comes from top 6 cities in India, other Tier 1 & Tier 2 cities contributes 49% of the market.

Coupons users by Gender in India

Another Key aspect in Coupon Market in India is increase in Female users.In 2015, percentage of female user of Coupon was around 27% but rapid women empowerment & increasing number of women having access of mobile & internet saw increase in percentage of women users in terms of usage of coupons which reached has reached 42% in 2021.

Coupons users by Device in India

One Interesting fact in Coupon Market in India is increasing penetration of Mobile. Being a predominant mobile using country, during 2015, mobile usage for digital/ E-Coupon was significantly high compared to Laptop/ Desktop. However, during further increase in mobile penetration in India, currently mobile usage in case of Coupon is estimated to be around 80% by 2021 in India.

SWOT Analysis

STRENGTH

    1) High penetration of Internet & mobile

    2) Increasing disposable income in India.

    3) High growth of E commerce market

    4) Growing trends of searching for online deals & coupons in India

WEAKNESS

1) High competition in Coupon market in India

2) Less margin for coupon platforms

3) Getting customers to platform is a challenge – need to work on SEO & social media ad campaign

THREATS

For coupon providing platform, online marketplace like Flipkart, Myntra etc. provides coupon for customers directly, which can be challenging for coupon providing platform.

OPPORTUNITIES

Besides providing coupons, providing deals for different ecommerce sites would be helpful to get more customers.

Threat of new entrants Threat of substitutes Bargaining power of customers Bargaining power of suppliers Competitive rivalry
There is no such entry barrier for new player. Since the competition is high but due to growing market there is lesser impact on entry of new player. Threat of new entrant is low. Online marketplace like Flipkart, Myntra etc. provides coupon for customers directly which is a substitute to coupon platform market in India. Since India customers are price sensitive, bargaining power of customers is quite high. Normally customers searches in different coupon platforms to get the best deals & coupons. Bargaining power of coupon service providers is not much. They earn certain commission for each coupon sale Competition is high in case of online coupon platform market in India.

Market Size Estimation

Value of distributed Coupon in India

Value of distributed coupon in India is estimated to be USD 40 billion in 2021 which is still quite low compared to other developed countries like USA but the market is expected to rise steadily till 2025 to reach USD 114 billion and stabilize around 2027 to reach market size of USD 124 billion by 2027. The market is forecasted to grow at a CAGR of 20.6% during the forecasting period of 2021-27.

Online Coupon & Deals Website Market in India

Online Coupon & Deals Website Market in India is estimated to be USD 180 million in 2021 and the market is expected to rise steadily till 2025 to reach USD 404 million driven by growth of Ecommerce market in India and stabilize around 2027 to reach market size of USD 430 million by 2027. The market is forecasted to grow at a CAGR of 15.6% during the forecasting period of 2021-27.

Competitors Analysis

CouponDunia

CouponDunia is a digital marketplace connecting shoppers looking for a great offer with businesses looking to increase their sales. Founded in 2010 by Sameer Parwani, the company is headquartered in Mumbai with a tech office in Bengaluru. CouponDunia receives about 10 million visits a month, shares coupons from more than 2000 online brands, has more than 7.5 million email subscribers and has more than 2.5 million app downloads. It has over 70 lakh users and has issued over 15 lakh coupons so far.

It helps users save money with its comprehensive listing of coupons, offers, deals and discounts whether it may be shopping from online brands or eating from favourite restaurants.

CouponDunia has grown to become India’s largest destination of discounts, coupons & offers and consists of regularly updated coupons from top Indian online merchants

Company Name CouponDunia
Company Type Private
Founded On 2010
Headquarters Mumbai, Maharashtra
Revenue $21 million
Website coupondunia.in
Social Media Presence
Social Media No. of followers
Facebook 518.6K (Running ad campaign)
Instagram 6.4K
Twitter 7K
mydala

mydala aims to help users maximize value in things to do around them. The company focuses on to bring the best savings to their users from their local neighborhood eateries and salons to the largest movie chains and online stores.

They also try to provide marketing services to their businesses partners with little or no upfront costs.

As claimed by the company, that they have worked with over 165,000 merchants and have over 38 million registered users who come to mydala to search for the best deals around them.The company has presence across 209 cities in India.

mydala has coverage around 140,000+ deals across multiple categories.

mydala.com has raised a total of $6.2M in funding over 3 rounds.

Company Name mydala
Company Type Private
Founded On 2009
Headquarters New Delhi, Delhi
Revenue $36 million
Website mydala.com
Social Media Presence
Social Media No. of followers
Facebook 203K
Instagram 1.6K
Twitter 9.2K
LinkedIn 3K
YouTube 493 subscribers (399K views)
GrabOn

Bhani Prasanna Raju M V founded GrabOn, a discount coupon website, in the year 2013. It is based in Hyderabad, Telangana and has a net worth of 4.4 million dollars.

GrabOn has been and continues to be the fastest growing startup in India’s Swarming couponing space. With more than 6.5 million visits each month, and ranked 180th on Alexa, GrabOn is the one of the largest couponing company in India. The company has over 3000 merchants listed in its platform

GrabOn’s focus on delivering more value to customers through technology innovation has fueled our growth so far

The offers and deals on this site are verified on a daily basis and clear details on the deals are provided to ensure that there is no ambiguity.

GrabOn has raised a total of $250K in funding over 1 round.

Company Name GrabOn
Company Type Private
Founded On 2013
Headquarters Hyderabad, Telangana
Revenue $15 million
Website grabon.in
Social Media Presence
Social Media No. of followers
Facebook 407K
Instagram 12.1K
Pinterest 6.5K
Twitter 8.5K
LinkedIn 4.2K
MyTokri

MyTokri.com is one the top coupon sites in India offering online shoppers more than just a coupon website in India. Founded in 2012, MyTokri.com is built with the object to provide online shopper’s a perfect place to Shop for products with complete knowledge of price and product review.

In Every category, MyTokri provides its customers discount offers and coupons after sorting with the merchant so that Buying experience just not remain a normal purchase it can turn out to some exciting approach. Contributing in MyTokri Community allows a user to earn coins and redeem them so far with additional coin redemption system which provide them the on choice gift.

In the search of best coupon sites in India MyTokri has one place solution of Coupons deals and discounts of amazon, myntra, jabong, flipkart, snapdeal and almost every online store.

Company Name MyTokri
Company Type Sole Proprietorship
Founded On 2012
Headquarters Alwar, Rajasthan, India
Revenue $7 million
Website mytokri.com
Social Media Presence
Social Media No. of followers
Facebook 36.6K
Instagram 338
Pinterest 670
LinkedIn 60
YouTube 424 subscribers (95K views)
CouponRaja

Based in Mahape, Navi Mumbai, Couponraja was founded by Prasad Shejale in 2011. It has a net worth of 15.7 million dollars and mainly provides coupons on apparels and is one of the largest providers of online coupons in India.

CouponRaja aims at creating an Online Shopping Experience like never before by bringing together all top Shopping websites at one place.It offers discounts on products bought from websites such as SnapDeal, Flipkart, 99acres, Myntra, Jabong and eBay. Discounts up to 80% and more are provided.

users can enjoy savings through these Coupons and also earn Extra Cashback on all their purchases.

Company Name CouponRaja
Company Type Private
Founded On 2011
Headquarters Mumbai, Maharashtra, India
Revenue $7 million
Website couponraja.in
Social Media Presence
Social Media No. of followers
Facebook 334K
Twitter 5.1k
YouTube 674 subscribers (213K views)
CouponzGuru

Couponzguru.com is one of the leading coupons and deals websites in India.

Couponzguru, founded in 2011 by Vikash Khetan, offers a wide range of coupons and deals for many of the famous online shopping stores. It has easy to apply coupons with a greater success rate and is a simple site to navigate through. It is constantly updated and assures good offers.

At CouponzGuru, provide users the latest coupons and deals for Online Shopping portals, Travel Portals, Hosting Providers and Pizza Outlets.

Some of the major portals they work with are :-

- Flipkart, Myntra, Jabong, Snapdeal and 200+ more online shopping portals

- Makemytrip, Yatra, Goibibo, Expedia and many more travel portals

Company Name CouponzGuru
Company Type Private
Founded On 2011
Headquarters Pune, Maharashtra, India
Revenue $3 million
Website couponzguru.com
Social Media Presence
Social Media No. of followers
Facebook 145K (Running ad campaign)
Twitter 22.1K
Pinterest 128
LinkedIn 585
FreeKaaMaal

FreeKaaMaal is India's Largest Bargain Hunting site where latest offers, discount coupons and deals are available from more than 500+ E-commence sites in India.

Founded in 2010 by Ravi Kumar, freekaamaal is a deal/offers website that offers lucrative free product offers for online shoppers in India. Based in Noida in Uttar Pradesh, India, freekaamaal has a net worth of 4.4 million dollars. The website is user-friendly and responsive and has coupons that give good discounts on latest trends.

FreeKaaMaal has 50,000 Members & 4 lakh Posts in India where a shopper can ask queries, post reviews and also earn points for every single activity. With more than 7.5 million page views/month their website rank as one of the Top 250 Internet properties in India.

Company Name FreeKaaMaal
Company Type Private
Founded On 2010
Headquarters NOIDA, Uttar Pradesh, India
Revenue $6 million
Website freekaamaal.com
Social Media Presence
Social Media No. of followers
Facebook 246K
Twitter 8.9K
Instagram 6.7K
Pinterest 177
LinkedIn 719
YouTube 11.7K (1.8 million views)
Saving.in

Saving.in, is a new coupon and deals website in India, they offer a convenient platform to discover discounts on great products. It’s easy to get overwhelmed by the thousands of offers and “deals” online. Saving.in strive to offer a seamless shopping experience that exceeds a great price. We give you value by connecting consumers to the best savings and discounts they need, every day. You can now find the best deals on all items, from the brands you love, all under one place.

Our collection includes local businesses and national companies. Leveraging the relationships we’ve established, our team curates a directory with the leading promotional offers available. As a member of our network, you can make an educated decision and shop local. Every promotion is thoroughly reviewed and validated. The collaboration of our community and editors ensures you get the best prices anywhere. Regain control over your spending and save big.

Company Name Saving.in
Company Type Private
Founded On 2019
Headquarters Chennai, Tamil Nadu, India
Website saving.in

*CouponDunia & GrabOn are the 2 most visited coupon sites in India.

Source: Statista, M&C Saatchi Performance, Shop Pirate, Coupon websites, Grabon, Cuponation, NextbigWhat, Dealstreet, websiteiq

Disclaimer: The content in this report generated based on online published media. The author of the report has taken due care and caution in completion of data as this obtained from various sources. However, the author does not guarantee the accuracy, adequacy or completeness of any information. All the information provided in the report are indicative relative market size & development.