Indian Ecommerce Industry
Indiaâ€™s Ecommerce Industry is filled with many top firms like snapdeal
etc.. Over the past four years, the consumer internet space has had its share of acquisitions, mergers, and shutdowns.
Flipkartâ€™s Letsbuy acquisition was probably the first major consolidation, soon to be followed by the likes of Fashionandyou-Urbantouch, Flipkart-Myntra, Snapdeal-FreeCharge, and of course, Myntra (Flipkart)-Jabong now.
While consolidation is a natural part of the evolution of any industry, it also sends out certain signals to those not directly involved. Thus, most of the acquisitions in the e-commerce space have largely been because of the inability of companies to raise additional capital and weed out competition or because they have been forced by common investors. Tiger Global, a common investor in Letsbuy and Flipkart, is said to have forced the former to merge with the latter while Ola bid for TaxiForSure as the SoftBank-backed company didnâ€™t want TFS to lock lips with hyper-funded Uber.
According to YourStory
Research, venture capital-backed companies in India have raised $2.1 billion for the first half of 2016, a 40-percent drop from the same period in 2015, when startups raised $3.5 billion across 380 deals. These volumes are not going to improve anytime soon, as two of the biggest believers â€” Tiger Global and SoftBank â€” allow their Indian investments to show some more promise before committing afresh.
On the aforementioned analogies, several Indian e-commerce companies are also slated to get transferred to deep pocketed players. YourStory had earlier written about chances of possible synergies between Flipkart- Paytm, Snapdeal-Paytm as they aim to compete with Jeff Bezos-led Amazonâ€™s increasing dominance and popularity amongst online shoppers.