Online shopping

online shopping: India ranks 2nd in global investment in digital shopping

India is the world’s second largest hub of venture capital investment for digital shopping companies, growing a whopping 175% from $8 billion in 2020 to $22 billion in 2021, according to a report. official analysis published here on Wednesday.

Globally, India came second behind the United States last year, which attracted $51 billion in investment, followed by China in third place with $14 billion and the Kingdom United in fourth position with 7 billion dollars.

In India, Bengaluru leads globally with $14 billion in venture capital (VC) investment in digital procurement in 2021, followed by Gurugram at #7 with $4 billion and Mumbai at #10 with 3 billion USD.

Bengaluru almost tripled its investments by $5 billion in 2020 to take the top spot, ahead of other major cities in the world – New York (second), San Francisco (third), London (fourth) and Berlin (fifth).

According to London & Partners’ analysis of investment data from, increased demand for online shopping during a series of lockdowns across the world during the COVID-19 pandemic has led global investors to show a strong appetite to support e-commerce businesses.

“Today’s data shows that the UK and India are two of the world’s leading hubs for digital shopping companies with high levels of global investment and unicorns,” said Hemin Bharucha, Country Director for India at London & Partners – London’s mayor of international trade and investment agency.

“It is fantastic to see Bengaluru emerge last year as a global leader in digital shopping investment. This surely creates several opportunities for collaboration with an already strong market in London.

“As Europe’s largest hub for digital shopping investment, there has never been a better time for India’s strong pool of fast-growing e-commerce companies to choose London as their destination to expand their business in outside of its home market,” he said.

The data also shows that Bengaluru ranks fifth among cities with the potential for future unicorns, just behind London.

Three of the 15 global cities with the most current unicorns are in India – Bengaluru at No. 6 with 19 unicorns in 2021 (up from three in 2020, Gurugram at No. 7 with 13 unicorns (up from 3 in 2020) and Mumbai at No. 14 with 7 unicorns.

London is Europe’s leading hub for digital shopping investment, with a record $5 billion raised by capital-based digital shopping firms in 2021.

Notable investment rounds in London-based digital shopping companies in 2021 included: a $180m Series H funding round for online food delivery service, Deliveroo; $150 million raised by online used car marketplace, Carzam; and $55 million raised by online dog food delivery service, Butternut Box.

“London has always been a city with a distinct creative style that comes from the grassroots and the streets,” said Julia Hawkins, partner at venture capital firm LocalGlobe.

“The huge growth of e-commerce has pushed many consumers into communities where they can find their tribe. Combining London’s creative flair with e-commerce and embedded fintech can create new opportunities for start-ups in London to which the rest of the world will turn to,” she said.

Overall, global venture capital investment in digital purchases more than doubled in 2021 following a significant consumer shift to e-commerce platforms during the pandemic.

Total global venture capital investment for 2021 was a record $140 billion, up from $68 billion in 2020.

London & Partners said the digital shopping company investment figures are based on online market definition from analytics firm Dealroom.Co, which provided the venture capital investment data as of 15 February of this year.