WallStAnalyst.com: Indian E-commerce – Survival of the Fittest

BANGALORE, January 6, 2014 /PRNewswire/ --

Dissecting Indian E-commerce Industry's Astronomical Growth and Death of Smaller Players

Though digital commerce in India has evolved over the past decade in terms of magnitude, several e-commerce companies are shutting shops. WallStAnalyst.com's Sanjay Pandey interviewed a few industry experts, including start-up advisory Microsoft Accelerator India's resident CEO, Mr. Mukund Mohan, to find out the reason behind rampant closures of smaller firms.

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In the past three years, venture capitalist invested around $700m in Indian e-commerce companies. FlipKart, the biggest Indian e-commerce entity, took the lion share with $360 million out of the $700m, while most start-ups in this industry died out due to funding drought.

Microsoft Accelerator India resident CEO, Mr. Mukund Mohan, said, "I think the problem is that we don't have the business model figured out very well. The economics of sale and the cost of doing business are just not working out to be a profitable venture for us. The volumes that e-commerce companies were expecting were not actually there. E-commerce is a very thin margin business and every transaction is small, so it banks highly on volume. But our volumes are nowhere comparable to some of the smaller populations like the U.S. and Europe."

WallStAnalyst.com also had a free-wheeling chat with Pratik Kumar, Director of digital marketing at Zivame.com, another e-commerce company. He explains how they managed to get second round of funding when their peers are crashing out of the race due to paucity of funds. The full article is available at http://wallstanalyst.com/research-desk/hot-w/760-ecom-hunger-games-survival-of-the-richest

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Primary Media Contact: Rajiv Singh, [email protected], 91-988-6277937

Secondary Media Contact: Sanjay Pandey, [email protected], 91-80-41514679