India’s Commerce Revolution Is Now AI-Native, Hyperlocal, and Led by Bharat: Report
Bengaluru: India’s digital commerce landscape is undergoing a seismic transformation, driven by deep rural internet penetration, explosive growth in Direct-to-Consumer (D2C) brands, and the rapid adoption of Artificial Intelligence (AI) in the retail sector. According to the Made for Bharat, Powered by AI: The New Age of Commerce Report by Shiprocket and KPMG, with 886 million active internet users 55% from rural India and UPI accounting for 84% of all retail digital payments, Bharat is not just catching up; it’s driving the change. The report was launched today at Shiprocket’s flagship commerce summit – Shiprocket SHIVIR 2025.
The D2C market is projected to hit $100 billion in 2025, with India ranking second globally in D2C funding. Quick commerce has evolved from an urban convenience to a nationwide habit, with a 40% surge in monthly transacting users and over 50% placing five or more orders each month. This shift from planned purchases to impulse buying is reshaping inventory, logistics, and marketing strategies. AI is no longer a futuristic concept—it’s the catalyst that is driving the transformation of the retail sector. From 99.9% order accuracy in warehouses to 90%+ demand forecast precision, AI is powering everything from logistics to customer engagement. Generative AI tools are enabling brands to create hyper-personalised campaigns at scale, while vernacular search is unlocking access for India’s multilingual internet base, where 98% of users consume content in regional languages.
“India’s commerce landscape is undergoing a paradigm shift, and we are witnessing not just digital growth but also a behavioural and infrastructural revolution. From kirana stores embracing AI to rural consumers driving quick commerce adoption, Bharat is now at the heart of innovation. 2025 is Year Zero of AI-native commerce where intelligence is not an enhancement but the default engine of business. The Shiprocket-KPMG report highlights how intelligence, speed, and personalisation are becoming the new pillars of retail. At Shiprocket, we believe the future of commerce will be built on inclusivity, data, and agility where every seller, regardless of size or location, can thrive in an AI-native, hyperlocal ecosystem.”, said Saahil Goel, MD & CEO of Shiprocket.
“India’s digital commerce ecosystem is entering a critical phase where intelligence, speed, and inclusivity are redefining how businesses operate and grow. The report reflects this shift, highlighting how AI is no longer a future ambition but a present-day enabler, especially for MSMEs and D2C brands. As we move into the ‘AI-native era,’ it’s critical to build infrastructure, tools, and partnerships that empower small businesses to compete and thrive.” said Manuj Ohri, Partner – Business Consulting, KPMG in India.
In line with the report’s emphasis on AI-led transformation, Shiprocket has also unveiled Shunya.ai, India’s first sovereign, multimodal AI engine built specifically for MSMEs and D2C brands. Developed in partnership with Ultrasafe Inc., Shunya.ai is trained on Indian commerce data, supports 9+ regional languages, and is hosted entirely within India using L&T’s GPU infrastructure, ensuring full data sovereignty. Shunya.ai is directly integrated into Shiprocket’s seller panel, and it offers intelligent automation across cataloguing, marketing, and fulfilment, with early pilots showing up to 40% time savings. As Bharat’s digital economy scales, Shunya.ai represents a strategic leap in making AI accessible, affordable, and locally relevant for the sellers.
