New Battle Brewing
Businessworld|August 22, 2016

The Indian e-commerce sector seems headed for a spell of consolidation, with players like Alibaba waiting for the right pickings.

Ayushman Baruah
New Battle Brewing

The consolidation story of the Indian e-commerce industry is old. And new. While the trend has been seen in the past, the industry is up for a phase of consolidation this year again, triggered by unsustainable business models and unwillingness of investors to continue pumping funds into businesses which are not on the path to profitability.

“Since the industry growth this year is not as high as the stratospheric levels of the last few years and focus has been on cost-cutting, it is natural to expect many consolidations, smaller/poorly performing players to get attached to the larger ones,” says Anil Kumar, founder, RedSeer Consulting. “We expect this trend to continue until the industry growth comes back on track.”

Over the past few years, the Indian e-commerce industry has seen a series of acquisitions, mergers, and shutdowns. Flipkart’s acquisition of electronics retailer Letsbuy.com in 2012 for an estimated $25 million was perhaps, one of the early signs of consolidation. Backed by common investors like Tiger Global Management and Accel Partners, this was also an example of investors pushing for an acquisition, as Letsbuy.com was not able to raise capital from the existing investors.

Then, in 2014, putting an end to months of market speculation, Flipkart announced that it had acquired leading fashion e-tailer, Myntra, at an estimated value of over $300 million. The move was seen as a measure to tackle competition from global e-commerce leader, Amazon, which was then just beginning to ramp up its business in India. The Flipkart-Myntra acquisition story also signified a positive wave in the sector, as it was not driven by distress. Flipkart’s then CEO (now executive chairman), Sachin Bansal, insisted that it was a “completely different acquisition story” unlike many others that had to be acquired because of lack of funds, or a clear strategy to pass on the baton.

Bu hikaye Businessworld dergisinin August 22, 2016 sayısından alınmıştır.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

Bu hikaye Businessworld dergisinin August 22, 2016 sayısından alınmıştır.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

BUSINESSWORLD DERGISINDEN DAHA FAZLA HIKAYETümünü görüntüle
MEMORIES & IMPRESSIONS
BW Businessworld

MEMORIES & IMPRESSIONS

Ratan Tata was an exceptional human being. He was a visionary leader, esteemed industrialist, and a humanitarian, who left an indelible mark on India and the world.

time-read
3 dak  |
October 19, 2024
The Robotaxi Market
BW Businessworld

The Robotaxi Market

The robotaxi market is shaping up to be a high-stakes battleground as tech giants and automakers race to transform urban mobility.

time-read
1 min  |
October 19, 2024
And the Nobel Prize Goes to AI
BW Businessworld

And the Nobel Prize Goes to AI

The recent Nobel Prize T awards to AI pioneers affiliated with Google have sparked a broader conversation about Big Tech's influence on research and the limitations of traditional prize categories.

time-read
1 min  |
October 19, 2024
Ola Electrified
BW Businessworld

Ola Electrified

Once considered a trailblazer in India’s electric vehicle (EV) ecosystem, Bhavish Aggarwal’s Ola Electric now faces a major accountability crisis.

time-read
1 min  |
October 19, 2024
Sharp Slide in Industrial Output on Eve of Deepavali
BW Businessworld

Sharp Slide in Industrial Output on Eve of Deepavali

India’s index of industrial production (IIP) saw a sharp reversal in August, contracting by 0.1 per cent, in stark contrast to the 4.7 per cent growth in July, mostly because of significant contractions in mining and electricity generation.

time-read
1 min  |
October 19, 2024
Heralding the Solar Era with Sustainable Electrification
BW Businessworld

Heralding the Solar Era with Sustainable Electrification

RAJEEV KASHYAP on the economics of solar power, the hurdles in scaling it, and much more

time-read
2 dak  |
October 19, 2024
A WELL-GREASED MACHINE
BW Businessworld

A WELL-GREASED MACHINE

The OmniBook X14 laptop runs on first-generation Snapdragon X Elite, which bets big on Al-enabled productivity and battery life, but falls short when it comes to overall experience, says Deep Majumdar

time-read
4 dak  |
October 19, 2024
DO NOT LETA HEALTH CRISIS RUIN YOUR FINANCIAL HEALTH
BW Businessworld

DO NOT LETA HEALTH CRISIS RUIN YOUR FINANCIAL HEALTH

For a family of four living in a metro, it is recommended to opt for a family floater health insurance plan with a sum insured of at least Rs 15-20 lakh

time-read
7 dak  |
October 19, 2024
Disruption Ahead: Beyond Organisation Charts and Structures
BW Businessworld

Disruption Ahead: Beyond Organisation Charts and Structures

ALBERT EINSTEIN FAMOUSLY said, “We cannot solve our problems with the same thinking we used when we created them.

time-read
3 dak  |
October 19, 2024
Dr. Rahul Shivajirao Kadam: A Visionary Leader Blending Sustainability, Innovation, And Social Empowerment
BW Businessworld

Dr. Rahul Shivajirao Kadam: A Visionary Leader Blending Sustainability, Innovation, And Social Empowerment

We are on the stage of global warming, and these technologies not only help prevent further damage but also leave behind a better environment for future generations.

time-read
2 dak  |
October 19, 2024