Small towns' growing desires drove D2C and e-commerce growth in 2024

In 2024, India's Tier-II and -III towns and the hinterland emerged as key growth drivers for e-commerce companies and direct-to-consumer brands, with strong demand for their products and services

In 2024, India’s Tier-II and Tier-III towns and other rural regions emerged as key growth drivers for e-commerce companies and direct-to-consumer brands, with strong demand for their products and services. 

E-commerce firm Meesho concluded 2024 with a 35 per cent year-on-year increase in orders, more than half of which were placed by buyers in small towns. The firm recently reached approximately 175 million annual transacting users this year despite challenging market conditions. Interestingly, about 50 per cent of its user base comes from Tier-4+ towns, among them Naidupeta in Andhra Pradesh, Sherghati in Bihar, and Harapanahalli in Karnataka. 

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