The Ecommerce business intuited many new entrepreneurs. But, there are losses of the top 22 online start-ups in the country soared by 293 per cent at Rs 7,884 crores for a combined revenue of Rs 16,199 crore for the financial year end.
As these startups continued to spend money on advertisements and discounts to lure customers, the graph of their losses extended.
According to a study by brokerage Kotak Institutional Securities, combined revenue grew by 191 per cent, with online market places such as Flipkart, Snapdeal and Amazon India leading the pack with a revenue growth of 475 per cent.
While the top three e-tail players, Flipkart, Snapdeal and Amazon, posted a massive combined loss of Rs 4,984 crores, revenue growth outpaced the growth in losses. These companies, which are often seen as the torchbearers of Indiaâ€™s start-up sector, seem to moving slowly towards building sustainable businesses, as has become more apparent in the past few months.
Both Amazon and Snapdeal posted individual revenue growths of 500 per cent, and according to the Kotak report, hit gross merchandise values (GMV) of $2 billion each. Flipkart had a slower growth during FY15, with revenues going up by 400 per cent and an estimated GMV of $3 billion.
â€œWe also note that Flipkart seems to have lost market share in FY15, as Amazon and Snapdeal ramped up sales. We believe recent initiatives of the company such as adding sellers aggressively, greater focus on its logistics business and opening it for third-party business, and the introduction of new categories is intended to help it maintain its lead over its peers, as well as add new revenue streams,â€ wrote Kawaljeet Saluja and Garima Mishra in the report.
This ecommerce graph gets extended to top players like sulekha, zomato etcâ€¦
Various industries like food industry, real estate and housing has also registered their presence in the ecommerce sectors respectively.