After the Government of India demonetised old banknotes of Rs 500 and Rs 1,000, Food Tech and Hyperlocal Grocery sectors have witnessed a significant growth in their online transactions in November on account of their dependency on cashless transactions, said a Bengaluru-based research and advisory firm RedSeer Consulting on Friday.
In a surprise move, Prime Minister Narendra Modi announced demonetisation of Rs 500 and Rs 1,000 notes from circulation on November 8 in an attempt to curb black money, terrorism and corruption.
According to RedSeer Consulting, Food Tech has seen a significant increase in its online payments, with some experiencing approximately 90% increase.
Players have introduced 'cashback' and 'pay later' offers that influenced more customers to go online, it said.
Similarly, Hyperlocal Grocery saw a sharp increase pushing companies to hire more staff.
The consulting firm noted that players are expecting much higher volumes over the next two to three months; with more customers switching to online payments than cash-on-delivery (COD).
However, due to lack of cash-on-delivery (COD) option and customer confidence on online payment wallets offered by few players, E-tailing and Online Cabs sectors saw a sharp decline in November post demonetisation.
“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,” RedSeer Consulting chief executive officer Anil Kumar, said in a statement.
However, the positive side of this is the number of customers becoming comfortable with cashless transactions, over the longer run will enhance the pre-paid model for these companies, Kumar added.
By accepting cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.
India abolishes larger banknotes in fight against graft, 'black money'
FM Arun Jaitley knew about demonetisation in advance: Piyush Goyal
RuPay card usage jumps nearly 119% in first week of demonetisation
Big Basket adds local offline stores to its online shopping cart
Demonetisation: Paytm records over 35 million online recharge transactions