Ratan Tata, the Sons Chairman Emeritus expressed his views on ecommerce on the 107th Annual General Meeting of Indian Merchants' Chamber. He said "valuations" and not "evaluations" are driving the play. It's true that the valuations (of e-commerce) are very high and valuation seems to be driving these companies more than traditional matrix of evaluation. We have to give these young entrepreneurs a chance to prove themselves. Shoulder to shoulder. With traditional business,"
Interestingly, Tata's personal investment portfolio comprises equity interests in e-commerce start-ups, including Snapdeal, PayTM, Urban Ladder and Bluestone.
Asked about whether the e-commerce bubble will burst, the veteran industrialist said this is the new trend in the country's commerce.
Ratan Tata said "It's actually a feeling that e-commerce is really the new trend for the Indian commerce. It serves millions of people. It's my personal money and not the company's money. I don't see where the debate isâ€.
He also added that "I believe that Indian enterprise needs to be encouraged. One needs to lend mentoring to young people, to give them a chance. One feels very proud when this new segment is emerging in the countryâ€.
Tata felt overseas investors in e-commerce companies will make sure that founders and the management maintain high standards of governance.