Investors shift their focus to profitable growth to achieve stability in ecommerce
Advertisement
Advertisement
Seeing the roller coaster ride that the According to the report, e-commerce B2C segment has grown significantly, leading to creation of many 'unicorns'.
"However, focus of investors going forward seems to have shifted to profitable growth to achieve stabilisation of the economic model," said the report titled 'e-Commerce in India - A Game Changer for the Economy'.
It further said the primacy on profitable growth seems to be leading to collaborations and partnerships across the
It forecast that since the e-commerce B2B segment is showing signs of rapid digital adoption, this is likely to feed the significant rise of MSMEs and entrepreneurs from the Indian hinterland.
Advertisement
With a push from investors for profitability and early break-evens, the leading e-commerce companies are seen to be cutting down their burn rates by as high as 50 per cent.
"This aggressive drive comes at a point when capital is becoming scarce for top venture-backed online retail companies. There is also a reduction in dependence on discounts as a growth strategy," the report added.
The e-commerce industry is expected to form the biggest chunk of the Indian Internet market with a value of approximately USD 100 billion by 2020.
According to the document paper, the e-commerce growth has been brought about by increasing Internet and smartphone penetration in not just metros, but in tier two and three cities.
Mobile devices are further expected to drive sales through online platforms over the next 5 years, it said.
Advertisement
(Image credits: indiatimes)
Advertisement
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- Saudi Arabia wants China to help fund its struggling $500 billion Neom megaproject. Investors may not be too excited.
- Catan adds climate change to the latest edition of the world-famous board game
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- JNK India IPO allotment – How to check allotment, GMP, listing date and more
- Indian Army unveils selfie point at Hombotingla Pass ahead of 25th anniversary of Kargil Vijay Diwas
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market