Why so much of Investments and Acquisitions in Indian Ecommerce Market?


Why so much of Investments and Acquisitions in Indian Ecommerce Market? No Comments

2014 – 2015 seems to be bright year for Ecommerce Market, Investors aggressively funding the Ecommerce Businesses. Look at some of recent Investments and Acquisitions in this industry

Ratan Tata Invested in

  • CarDekho.com in Feb 2014
  • Snapdeal in Aug 2014
  • Bluestore in Sep 2014
  • Urban Ladder in Nov 2014
  • Paytm in March 2015
  • Xiaomi in April 2015
  • Kaaryah in June 2015
  • Jungle Venture in July 2015
  • Ola Cabs in July 2015

The Mahindra Group acquired BabyOye in Feb 2015.

Flipkart acquired WeHive Technologies, AdiQuity and Appiterate in 2015

Foodpanda acquired Just Eat India and TastyKhana in 2015

Snapdeal acquired Freecharge.in and MartMobi in 2015

In order to understand this you will have to understand growth of India’s Internet user base

  • By June 2015 India’s internet user base was 354 million, 17% growth in first 6 months of 2015 according to the IAMAI.
  • It was 302 million in Dec 2014 with growth rate of 32% in a year.
  • While it took more than a decade for the user base to increase from 10 million to 100 million, and three years to cross the 200 million mark and it took only a year to reach to 300 million from 200 million.

Tremendous growth in India’s Internet user base helping Ecommerce companies to increase Transactions.

  • India’s Ecommerce market was worth about $3.8 billion in 2009
  • $12.6 billion in 2013
  • It went to $16.5 billion in 2014
  • And expecting to reach $65 billion in 2019

Solid growth of Indian Ecommerce Transaction attracts big player to invest into this industry.

The Ecommerce businesses will continue to attract investors. Several Indian large Private Equity firms, which previously avoided investing in Ecommerce, are now looking for opportunities in the sector.