Indian e-commerce is projected to explode from $10 billion to $43 billion in the next five years, according to Nomura’s India Internet Report last month. There are 11 categories, and within them 42 players, that are poised to shape this blazing path.
The Bulge Bracket
The multi-category segment is on fire this year. The largest pie of the online retail ecosystem is drawing the maximum risk capital and eyeballs.
The top three players — Flipkart, Snapdeal and Amazon — are expected to do $4 billion in sales this fiscal. “Indians are horizontal bazaar shoppers and don’t have deep vertical buying experience offline in most categories,” says Suvir Sujan, co-founder of Nexus Venture Partners, an early investor in Snapdeal.
Today, all multi-category players are on the inventory-less marketplace model. They are all investing heavily in warehouses and delivery. They are making acquisitions. “You will see us do some very interesting and strategic acquisitions very soon,” says Kunal Bahl, cofounder and CEO of Snapdeal.
VC firm Accel Partners expects the product e-tailing market to expand from $2 billion in 2013 to $8.5 billion in 2016. And, for now, the focus is more on growth and less on profitability.
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