Let’s talk about a low-risk, high-reward way to invest in the massive market opportunity that is India! $AMZN, $FB, $GOOG, $NFLX, $WMT

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India has a population of 1.353 billion, almost 1 billion more people than the US! It has the fifth largest economy in the world. India’s economy is growing rapidly, and by 2030, it is project to become the world’s second largest economy.

According to a recent Goldman Sachs report, the e-commerce industry in India is projected to be worth $200 billion by 2026, while the penetration rate is supposed to more than double from 5% to 11%.

At the same time, digital transactions in India are expected to be worth $1 trillion by 2025, while the user base for digital transactions should more than triple.

Despite the massive growth of these two industries, few Indian companies are even publicly traded. In fact, outside of $HDB, an Indian banking company, and some smaller opportunities like India’s http://booking.com  $MMYT, few pure Indian plays exist for investors.

Furthermore, investing in India comes with its fair share of risks. The geopolitical situation is constantly changing, and in a country with the size and political/economic significance of India, there is no guarantee the economy will remain stable.

Nonetheless, some leading American companies are offering investors more and more exposure to Indian markets. By investing in these companies, investors can benefit from India’s growth, but do not face the risks of investing in a pure Indian company. Let’s examine a few of them:

$AMZN is seeking to capitalize off of the rising e-commerce trend in India. Currently holding over 30% of the e-commerce market in India, Amazon sells products from hundreds of thousands of Indian businesses. $AMZN has invested over $10B into India.

Opposing $AMZN in e-commerce is Flipkart, a homegrown company that, like $AMZN, grew from an online bookseller into a dominant e-commerce player. Also holding about 30% of the market, Flipkart is looking to capitalize on the massive e-commerce growth.

Investors can gain exposure to Flipkart’s success by investing in $WMT, which owns a whopping 77% of Flipkart. Between $AMZN and $WMT, investors can be invested in ~70% of India’s massive e-commerce market.

$GOOG is another company seeking to profit off of the rapid digitalization of India. With India just last month shutting down the operations of dozens of Chinese firms in its markets, the opportunity for $GOOG to make inroads is greater than ever.

At the same time, $GOOG is invested in a handful of Indian startups, including delivery service Dunzo. They have partnered with local smartphone vendors to push forward the digital revolution in India, and will benefit greatly from India’s continued development.

$NFLX too is trying to ramp up its market in India, investing hundreds of million dollars into original Indian content and rapidly growing its subscriber base in India. The market opportunity in India could potentially end up much larger than that in America.

Finally, on the financial technology trend, companies like $FB are revolutionizing the Indian digital payments ecosystem. Earlier this year, $FB invested $5.7B in Jio Platforms, one of India’s leading telecommunications providers.

Then, just recently, $FB announced it would begin offering credit and payments services through WhatsApp, which has over 400 million users in India. India is WhatsApp’s biggest market, and India also has millions of Facebook and Instagram users.

$FB frequently talks about India as one of their top market opportunities, and they are certain to benefit from India’s growth.

Overall, all of these companies present significant exposure to the rapid growth happening in India. While I wouldn’t expect the market caps of companies like $AMZN or $WMT to double or triple in the near future, India provides a clear avenue for growth.

At the very least, these companies provide an opportunity to diversify one’s portfolio and invest in safe, high-quality companies while simultaneously gaining exposure to a huge growth opportunity.

There are certainly other companies pushing into India, such as $MA, but these were just a few leading companies that frequently talk about the Indian market.

As always, thank you for reading, and I would love to hear anyone’s thoughts on these companies or others in India!