ComCap Marketplaces H1 2023

ComCap has been active in the marketplaces space and our report is aimed at enhancing transparency and communication between the market players, as well as financial and strategic investors. In our report, we highlight the growth potential of the sector and showcase the marketplaces landscape. The report also highlights the deal activity in the space and recent public offerings.

Key trends highlighted in the report include:

  • Global online marketplaces is estimated to reach $8.8TN by 2025, witnessing a CAGR of 20% during 2020-25, mainly driven by rising customer engagement, mobile commerce, and frictionless payment methods
  • B2B marketplaces is thriving in the post-COVID era, with spending on these marketplaces estimated to witness a 10% CAGR during 2021-27, to reach $3TN by 2027
  • Despite a drop in number of deals, total deal value (over $10MM, excluding China) surged by 1.5x in 2022, due to few big ticket deals including, IAA ($8.5BN) and Poshmark ($1.6BN) in Q4’22
  • After high octane 2021, the funding space posted slow activity with just 95 deals over $10MM in 2022 (down 33% YoY)
  • Horizontal marketplaces based out of the US enjoy higher revenue (2.2x FY23E rev.) and EBITDA (15.1x FY23E EBITDA) multiples as compared to their ROW peers

Other key themes covered in the report include:

  • Enterprise marketplaces, an online marketplaces operated by traditional retailers, allowing third-party vendors to sell directly to their end-customers, have gained popularity in the last few years, with key retailers (like Walmart and Macy’s) already embracing this model 
  • Marketplaces are leveraging AI & ML and AR & VR to improve customer experience, drive higher conversion, and lower product returns
  • Live streaming commerce is making further inroads with several marketplaces already adopting it to enhance their customer reach
  • Blockchain-based decentralized marketplaces have the potential to increase efficiency in the way goods and services are exchanged by enhancing security and transparency of the transaction