Market Expansion Overview
The e-commerce market in India is showing considerable growth, with multiple online brands achieving higher revenue via their proprietary channels and apps,
in contrast to their performance on large platforms such as Flipkart and Amazon. Flipkart and Walmart have also provided a significant boost to Ninjacart, delivering an additional $30 million. The industry is witnessing significant mergers and acquisitions (M&A) activities, as seen with the Tata Group's efforts to increase their e-commerce presence. Companies are also responding to pre-Covid-19 levels of customer demand for food delivery, as indicated by Zomato's Deepinder Goyal. Major platforms have observed that the Covid-19 pandemic did not curtail the enthusiasm of their teams, as they prepared for large sales events.
Investment and Funding
Recent investment activities indicate robust investor interest in the Indian e-commerce and related sectors. Avataar.me secured $7 million in funding from Sequoia India. Razorpay has received a $100 million investment round, with the valuation potentially reaching $1 billion, led by GIC and Sequoia. FreshToHome is negotiating a $130 million funding round, indicating the high valuation of e-commerce focused on fresh food. Pepper Content secured $4.2 million in funding, led by Lightspeed India. Furthermore, there is a trend of investors avoiding young startups that have Chinese capital. Another organization, WeKan, is preparing to incubate and fund as many as 20 Indian startups, which demonstrates a rising trend in entrepreneurial support.
Impact of Digital Tools
The rise in the use of technology has altered the landscape. Gmail has implemented new workplace tools, allowing corporate customers to modify documents and files without leaving the email service. The Amazon Alexa app has undergone a makeover, now customized to better meet user requirements. The rollout of e-gifting options is underway in preparation for the upcoming holiday season. The digital environment is experiencing constant growth, driven by technological innovations that aim to improve user experience.
E-Commerce Strategies
Companies are employing different approaches to reinforce their positions and explore new opportunities. The Tata Group is assessing M&A options to increase its e-commerce capabilities. Meru Cabs has launched a service to facilitate commuting to offices. Rekha Jhunjhunwala-backed Baazar Style Retail has turned profitable in Q2, with revenue jumping 71% year-over-year to ₹51 crore. Many businesses are seeking to provide quick service and capitalize on the growing customer base by making their services more accessible. Early Diwali offers are being given by Covid-hit banks on e-commerce, offering customers the chance to buy at competitive prices, especially during the festive season.
