Tier-2 and Tier-3 cities power India's next e-commerce wave as D2C brands scale beyond metros

Smartphone penetration, UPI adoption and improved logistics are unlocking thousands of new pin codes for online retail. Shiprocket flags integrated shipping, COD and returns infrastructure as the backbone enabling D2C brands to push past metros into smaller Indian towns over the next few years.

— Source publishedFri, 15 May, 2026, 18:32 IST·First seen Fri, 15 May, 2026, 18:40 IST·Source ET Small Business

What happened

Tier-2 and Tier-3 cities are driving India's next e-commerce wave, fueled by smartphone access, UPI payments and improved logistics. Shiprocket notes integrated

Why this matters

Scout bolt-on targets in regional D2C, last-mile logistics, and COD/returns infrastructure to acquire tier-2/3 distribution before valuations reprice on this demand shift.