India's e-commerce market set for 70% Growth in Revenue

Published: Oct 31, 2014 06:45:30 AM IST
Updated: Oct 30, 2014 07:00:14 PM IST
India's e-commerce market set for 70% Growth in Revenue

While flipkart, amazon and Snapdeal are in a race to outdo one another in sales, what they have done, in effect, is grow India’s ecommerce market at breakneck speed over the last one year.

According to an October report by Gartner, an American information technology research and advisory firm, ecommerce in India is likely to cross $6 billion in revenues in 2015, recording a 70 percent increase from a year ago. This makes India one of the fastest-growing ecommerce markets in the Asia-Pacific region.

The growth is being aided by the fact that more than 30 percent of traffic on ecommerce platforms is now coming from mobile phones and tablets. “There is increasing traction in mobile shopping. Marketplaces, consumer product goods, and food and beverage companies have started investing in mobile commerce,” the report says.

Mergers and acquisitions (M&A) activity has shown considerable growth as well. Led by the Rs 2,000-crore Flipkart-Myntra deal in May, the year recorded a 187 percent growth in overall M&A transactions, according to a VCCEdge report. Also, the size of PE/VC deals rose by 7 percent to $637 million from $592 million in 2013.

“M&A activity is increasing, resulting in fewer digital commerce platform options in the market, but also serving to extend the commerce platforms of the established vendors,” says Praveen Sengar, research director at Gartner.

He adds that B2C e-commerce leads the market in India, with “vendors increasingly focussed on execution and winning new customers, sometimes at the expense of articulating future vision”.

(This story appears in the 14 November, 2014 issue of Forbes India. To visit our Archives, click here.)

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  • Pardha Saradhi

    Hi Team, Dont trust information provided by Flipkart. it is very bad services. they cant deliver the product and track the product. even customer care is useless. every time they will say 24 hrs check the status. and they dont even have any escalation team.

    on Nov 13, 2014
  • Jonathan

    Home consumers is what India must have & that means massive infrastructure projects or NO rise in GNP.

    on Oct 31, 2014