Industry Analysts expect mobile to continue to drive India internet sector in 2017. Mobile already accounts for 60-70% of the internet traffic in India, and companies are expected to focus on app ? increase user engagement and reduce dependence on paid traffic. With telecoms companies dropping data charges, penetration of high speed data should continue to rise into 2017E, and together with the recent push by the Indian government to digital/cash-less payment infrastructure, internet players should see significant increase in user adoption, in our view.
On the flipside, the funding environment remains tight across verticals and has led to exits, consolidations and focus on unit economics. Growth remains largely tied to capital and therefore well funded players are likely to retain the edge
