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India’s Gen Z consumers could emerge as a key driver of incremental growth across consumer internet businesses over the next decade, creating fresh opportunities for platforms that have successfully attracted younger users, according to global brokerage JPMorgan.
In its analysis of consumer internet companies, JPMorgan said most Indian internet categories have an average user age of 30–32 years. The transition of Gen Z consumers into the millennial age group also points to the potential for sustained growth across the sector.
The brokerage identified edtech and recruitment platforms as the categories with the highest Gen Z salience. Among individual companies, Toing (Swiggy), Nykaa, Meesho and Groww stand out in their respective segments for their ability to attract younger users.
JPMorgan's top picks for Gen Z exposure are overweight-rated PhysicsWallah, Meesho and Groww. It also sees potential for stronger-than-expected growth in categories often considered mature, particularly food delivery and recruitment classifieds. In this context, the brokerage highlighted overweight-rated Info Edge and Swiggy as its picks for growth durability.
Edtech is the youngest consumer internet segment, given that most test-preparation aspirants in India fall in the 18–34 age group, with a majority below 27, JPMorgan said.
Recruitment platforms are also well-positioned to benefit as this cohort enters the workforce and begins looking for employment opportunities. Going-out platforms, including District (Eternal) and BookMyShow, also enjoy high Gen Z salience.
In contrast, real estate, home services and online travel agency (OTA) platforms have the lowest proportion of Gen Z users. JPMorgan attributed this to higher ticket sizes in real estate and travel, as well as use cases that tend to appeal more to older consumers, including millennials and Gen X.
Food delivery is a relatively young category, with around 65% of its users belonging to Gen Z, according to JPMorgan. This demographic mix could provide the segment with a longer growth runway than its perceived maturity suggests.
Toing, Swiggy's newer platform, has attracted a significantly higher share of Gen Z users than its parent platform and Zomato. JPMorgan attributed this partly to its focus on value rather than convenience.
The brokerage also noted that newer platforms Toing and Ownly have a younger user profile than established players Swiggy and Zomato, indicating that they could be expanding the category. Zomato, meanwhile, has a younger user base than Swiggy.
Quick commerce platforms have a lower proportion of Gen Z users than food delivery and e-commerce, JPMorgan said. The brokerage linked this to the segment's greater emphasis on convenience rather than value and subsidies.
Within quick commerce, the standalone Instamart app has a younger user profile, while Zepto, Blinkit and Swiggy's parent app have broadly similar demographic profiles.
Nykaa has the highest Gen Z salience among e-commerce platforms, supported by its strong social media presence and focus on younger consumers, JPMorgan said.
Meesho also has a relatively young user base, with around 65% of its users belonging to Gen Z. Its value-focused proposition has helped it attract younger shoppers.
In comparison, Amazon and FirstCry have the oldest user profiles among the platforms assessed by the brokerage.
Among digital investment platforms, Groww has the youngest average user age, reflecting its success in attracting aspirational investors and traders, according to JPMorgan.
The brokerage sees this as an opportunity for future average revenue per user (ARPU) expansion as these customers mature and deepen their engagement with the platform.
Zerodha, by contrast, has the oldest demographic profile among the digital brokers analysed, with a larger proportion of millennial investors and traders.
Recruitment is among the categories with the highest Gen Z salience. However, Naukri has the lowest proportion of Gen Z users among the recruitment platforms assessed by JPMorgan.
The brokerage said this could reflect Naukri's relative success in shifting towards higher-value and premium senior-level roles, which typically attract older job seekers.
JPMorgan's preferred stocks for exposure to Gen Z-driven growth are overweight-rated PhysicsWallah, Meesho and Groww.
The brokerage also sees potential for recruitment classifieds and food delivery to deliver better growth than investors may expect, despite perceptions that these categories are mature.
It identified overweight-rated Info Edge and Swiggy as its preferred plays on growth durability, arguing that their exposure to categories with strong younger-user participation could support growth over the longer term.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
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