Future of eCommerce startup in India

1,780 Views Updated: 09 Mar 2017
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Future of eCommerce startup in India

Trading is persistently on the rise, creating the ideal platform for all business-minded people looking to make a claim in the multi-billion-dollar eCommerce industry.

More than that, 2016 has been the amalgamation of the mobile era, which suits eCommerce organizations exceptionally well. 

Some of the top funded eCommerce startups in India are Flipkart, Snapdeal, Myntra, ShopClues, Jabong, Naaptol, Pepperfry, Caratlane and HomeShop18.

Though, The Indian eCommerce market is growing at a good pace but then what is it that is leading this market to huge losses?

Answers (4)

E-commerce is the technology which is expected to become more popular in the future. While e-commerce is the maturing market, emerging economies are poised to become the next mega market as the adoption of internet rises gradually. Emerging markets are the hotbeds for e-commerce that comes with unique opportunities and challenges across the regions.

In emerging markets, the e-commerce has been growing exponentially, and at a rate may soon surpass the developed countries in 2018. As, e-commerce achieves higher penetration rates in developing countries, and it will overcome obstacles to adopt the high-speed networks which are fast enough for Smartphone and shipping cost.

For more information about e-commerce development services, you can visit 

The best section of the procedure is the ability to gain complete authority over the functioning of the website. A well-established ecommerce shopping cart has a smooth functioning and changing the way people shop for a product. The fantacy clone script enables an individual to turn into an entrepreneur within a short time. Nevertheless, there are several aspects that one should consider   while choosing the script.The multi vendor marketplace script creates a platform that brings together people, merchants, stores and products. It is a unique shopping experience, as people can   brag about the shopping experience in social media platforms and watch the purchases made by their friends.

Though consumer demand online for products has shrunk and a period of amalgamation is expected next year, India’s eCommerce organizations have widened their losses in 2016. Companies such as Flipkart, Pepperfry and Quikr reported huge losses in the year of 2016 as compared to 2015, indicating a cut throat competition amongst online companies to achieve volumes than substantial growth towards a path to profitability.

Filings with Ministry of Corporate Affairs indicate that regardless of Venture Capital firms tightening purses, online organizations have not decreased the expenses.

Let’s put limelight on three such organizations -

Flipkart which is a Bangalore based online organization has reported a loss of Rs. 2,306 crore in the financial year of 2016 compared to Rs 1,096 crore loss in the fiscal year of 2015. The company also reported a revenue of Rs 1,952 crore last financial year compared to Rs 772.5 crore in the previous fiscal year. 

India’s largest online furniture retailer Pepperfry’s losses increased from 88 crore in the 2015 financial year to 155 in the last fiscal year of 2016. The revenue recorded for the previous year ending was Rs 98 crore.

The largest online classifieds player Quikr’s losses widened from Rs 446 crore in 2015 to Rs 534 in the year 2016. The revenue recorded was of Rs 95 crore, up from Rs 53 crore recorded in the same period in the year 2015.

As losses increase, eCommerce startups in India are getting into a vicious circle of widened losses to produce more growth.

It is anticipated that in the next two years 50 percent of all consumers will be making transactions using their mobile phones.To prepare for this, most of the eCommerce startups are building their business models on mobile applications with user friendly designs.

While the number of online customers is estimated at 35 million and buyers do recognize the comfort and convenience of having goods delivered to their doorstep, purchases on the Internet, appears to have been driven by discounts and freebies. This seems to be true even for the payments business.

With a couple of business showing a smaller cash burn, financial investors seem to be hesitant to fund ventures at what are undoubtedly giant valuations. Between January and November, just $3.7 billion has been invested in these businesses, about half the $7.5 billion which came in amid the comparable period of 2015. Between April and November, funding for eCommerce businesses from PE & VC firms was down 72% yearly to just $1.2 billion.

The amalgamation in specific spaces following shutdowns and mergers may lead to losses for a few firms in Financial Year 2017 and thereafter.

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