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E-tailing and Food Tech to be negatively impacted by currency

demonetization in near term; online cab players to benefit the most

Source- RedSeer Analysis

E-Tailing

Online Cabs

Near Term Mid Term Rationale

Future impact of currency demonetization on transaction volumes

Food Tech

Hyperlocal

Grocery

• With 70+% of overall and 40% of high value

transactions being COD, the currently COD-only

customers will shy away from transacting online in the

near term- especially for high value categories

• However, increased liquidity and attractive online offers

will likely bring them online again in the mid term

Consumer Internet Sector

Positive NegativeNeutral

• In near term, cash starved bus and auto users could shift

to online payments friendly transport modes like cabs-

boosting the near term transactions

• Cab rides have a low average ticket size (~INR 200) and

these newly added customers could continue using the

service in the near term as well

• In near term, cash paying occasional customers would

stop ordering online – bringing down the transactions

• In the mid term, stabilization of liquidity conditions would

see the transactions on these platforms returning back

to usual

• Challenges of doing cashless grocery purchases offline

could see a spike in online orders in near term

• In the mid term, stabilization of liquidity conditions would

see the transactions on online platforms dropping back

to usual levels