This festive season, India’s online shopping story has a new hero, and it is not the big metro shopper. Fresh sales data released this week shows that small cities and towns drove the biggest surge in festive buying, leaving Delhi, Mumbai and other metros behind on growth.
According to the report, cashback platform CashKaro clocked more than Rs 1,000 crore in gross merchandise value across 38 lakh orders on Amazon, Flipkart, Myntra and AJIO during just six days of festive sales, from October 7 to October 12. That is roughly 18 times what a normal six-day period delivers, with order volumes up more than sevenfold.
Tier 2 cities stole the show
The standout number is where the growth came from. Tier 2 cities posted a 722 per cent jump in sales over a business-as-usual period, outpacing Tier 1 cities at 684 per cent and Tier 3 at 639 per cent. Bhubaneswar led the country with around 910 per cent growth, followed by Pune at 796 per cent and Patna at 777 per cent. Delhi grew 646 per cent and Mumbai 579 per cent, still huge numbers, but slower than the small-city charge.
Shoppers also spent more per order. The average order value rose from about Rs 1,100 on a normal day to Rs 2,639 during the sale window, suggesting families used the festive offers to buy bigger-ticket items rather than simply buying more things. CashKaro paid out Rs 26 crore in cashback during those six days, up from Rs 6.1 crore in a regular week.
What India bought: ethnic wear and TVs
Festive tradition showed up clearly in the carts. Men’s ethnic wear saw nearly 29 times the order volume of a regular period, as shoppers stocked up on kurtas and festive sets. Televisions grew more than 26 times, a sign that home upgrades were a priority this Diwali. Laptops, tablets and beauty products also recorded sharp jumps.
One category bucked the trend. Mobile phones declined 7 to 10 per cent compared to last year, with rising component costs pushing retail prices higher. Phone buyers leaned on exchange offers and no-cost EMI plans instead of driving fresh purchases.
Telegram became the deal hotspot
Another surprise from the data: Telegram emerged as a serious shopping channel. CashKaro’s sister app EarnKaro powered 80 per cent of the deal links shared on the platform, with more than five lakh deal posts driving 50 million clicks to partner sites in six days, nearly six times normal volumes.
Brands noticed. Marketing spend on Telegram went up more than tenfold, with many sellers reporting returns above 15 times their ad spend.
But shoppers are still counting every rupee
The boom sits alongside a note of caution. A separate consumer survey released this week estimates that urban households will spend Rs 1.97 lakh crore on festive purchases this year, about 6 per cent lower than last year’s Rs 2.10 lakh crore estimate. More than 80 per cent of households planning festive purchases expect to dip into savings, and nearly a third say they do not plan any discretionary spending at all.
The takeaway is familiar but important: India is still buying, but selectively. Small-city shoppers are leading the charge, Telegram is the new bazaar, and value for money decides the cart.
FAQs
Q. How much did Indians spend online during the festive sale week?
A. CashKaro recorded over Rs 1,000 crore in GMV across 38 lakh orders on major platforms between October 7 and 12, 2026.
Q. Which cities grew the fastest in festive shopping?
A. Tier 2 cities grew 722 per cent, with Bhubaneswar leading at roughly 910 per cent, ahead of Delhi and Mumbai.
Q. What sold the most this festive season?
A. Men’s ethnic wear and televisions saw the biggest jumps, followed by laptops, tablets and beauty products. Mobile phones were the one category that shrank.
Q. Why did Telegram matter this festive season?
A. Over five lakh deal posts shared via EarnKaro links drove 50 million clicks to shopping sites in six days.
Q. Are shoppers spending freely this festive season?
A. Not exactly. Most urban households plan to use savings, and total festive spending is expected to be slightly lower than last year.
Informeia will keep tracking how India’s festive economy shapes up through Diwali and the wedding season. Stay tuned.
