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Demonetization was a Boon for Hyperlocal Grocery and Food-Tech Sectors While E-tailing and Cabs Suffered a Decline

While Food-Tech and Hyperlocal Grocery sectors have seen a significant increase in their transaction volumes due to their business models encouraging more cashless transactions; e-tailing and Online Cabs have seen a decline due to larger dependency on CoD.

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RedSeer Consulting, a research based advisory firm focused on achieving excellence in the consumer internet market, reveals that the various sectors within consumer internet have been affected very differently by the government’s currency demonetization initiative which came into effect on 9th November 2016.

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While Food-Tech and Hyperlocal Grocery sectors have seen a significant increase in their transaction volumes due to their business models encouraging more cashless transactions; e-tailing and Online Cabs have seen a decline due to larger dependency on CoD.

Commenting on the findings of the research, Anil Kumar, CEO, RedSeer Consulting said, “Hyperlocal Grocery and Food-Tech are clear winners as customers don’t have any ready-cash to do the daily offline purchases; but for E-tailing and Online Cabs, the month of November has been a hiccup in their growth stories – both dependent heavily on cash transactions. However, the positive side of this is the number of customers becoming comfortable with cashless transactions, over the longer run this will enhance the pre-paid model for these companies.”



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