BANGALORE, May 14, 2014 /PRNewswire/ --
E-commerce Players Make Best of Booming Market
India's e-commerce market is currently witnessing a boom and is expected to grow seven-fold to $22 billion in the next five years, according to venture capital firm Accel Partners. And scripting this immense growth story is the 200-million strong online population that is increasingly shopping on-the-go, spurred by the huge improvement in internet infrastructure across the country. India's e-commerce market, excluding travel sites, is currently worth $3.1 billion. Most importantly, the Indian e-commerce market is expected to expand to $22 billion in five years, making it a hot favorite among investors and funding bodies alike. Hence, it comes as no surprise that Indian e-commerce players are looking to garner funds through overseas listings as part of their growth strategy. Access this coverage of India's booming e-commerce market at:
http://wallstanalyst.com/snapdeal-to-ride-on-e-commerce-ipo-wave/
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Indian e-commerce firms are looking to cash in on the recent media interest generated among investors by their Chinese counterparts. Not to be left behind, Indian e-com players are also looking to raise funds with a US Initial Public Offering (IPO). Having already lapped up huge amount of seed capital and venture capital funding, these e-com players are aiming for over-the-top valuations that could catapult them into the big league of players, which would provide them added edge over smaller market rivals.
However, disrupting the apple cart is the Indian Enforcement Directorate (ED) that has cracked the whip for possible violations of foreign direct investment (FDI) norms. The ED is investigating those retailers that get overseas funding for sister concerns that operate in the FDI-permitted segment, but transfer funds to another entity that operates in a segment where FDI is not allowed. Many e-commerce players that are under the ED scanner may see their IPO plans go kaput if they are pulled up for violating government norms. Read our coverage of the Indian retail sector by visiting the following link:
http://wallstanalyst.com/category/sx/senx/
Tech Majors Pursue Growth Through Demergers
In the tech sector, Indian technology powerhouses are looking at demergers as a means to prop up revenue and profit margins while enabling them to focus on creating significant and differentiated product offerings. Hiving off laggard divisions into separate subsidiaries will also enable technology companies to enhance product delivery across a vertical and focus on core business areas. Industry experts positively believe that demergers could help large companies overcome many challenges relating to stagnating margins in a market where investors can change track at a hint of a revenue slowdown. Read more about our coverage of the Indian technology sector at:
http://wallstanalyst.com/infosys-demerges-pps-division-into-subsidiary-named-edgeverve/
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