Indian e-commerce is projected to
explode from $10 Billion to $43 Billion in the next five years. There are
eleven categories and within them 42 players that are poised to shape this
blazing path. Let us look at e-commerce industries in different categories,
their investors, and funding raised by them.
The first in the category of
e-commerce is Market Place. This multi category segment is on fire this year.
The largest pie of the line retail ecosystem is drawing the maximum risk
capitals and eyeballs. The top three players – Flipkart, Snapdeal, and Amazon
are expected to do $4 Billion in sales this fiscal. All multi category players
are on the Inventory less market place model. They are all investing heavily in
warehouses and delivery. They are making acquisitions. Their focus is now on growth
and less on profitability. Investors in Flipkart are Accel and Tiger Global.
Investors in ShopClues are Nexus Venture and Helion Ventures. Snapdeal
investors are Kalaari, Nexus Venture, Intel Capital, Bessemer, eBay, and Premji
Invest.
The second category in the list is
Travel. If multi product players have the eyeballs then travel portals have the
wallet. At around $8 Billion, online travel accounted for 70% of the overall
Indian e-commerce market in 2013. Three shifts are underway, one with air tickets
becoming a staple, travel portals are turning their focus to hotel bookings and
travel packages. There is a growing emphasis on smartphone traffic and
applications. Big players are Cleartrip, Expedia, Ibibo, IRCTC, Makemytrip,
RedBus, and Yatra. Investors in Cleartrip are Concur Technologies and Reliance
Ventures. Investors in Makemytrip are SAIF partners, Tiger Global. Investors in
RedBus are Naspers. Yatra investors are Capital 18, Norwest, Intel Capital, IDG
Ventures, Vertex, and Valiant Capital.
The other category in Indian
e-commerce is Fashion. After electronics, fashion and lifestyle is the largest
industry in online retail with a 25% share. Myntra and Jabong are the leaders
competing fiercely with discounts and for exclusive brand partnerships. Myntra
is launching private labels including Roadster and Dressberry. With external
brands give up to 35% and in house labels go up to 60%. Jabong is in
partnerships with international brands and designers. Other players are Yepme,
Fab Alley, and Zovi. Investors in Jabong are Rocket Internet. Investors in
Myntra are Kalaari, Accel, Tiger Global, IDG Ventures, and Premji Invest.
Investors in Yepme are Helion Ventures. Investors in Zovi are SAIF Partners and
Tiger Global.
Furniture is the third largest segment
in e-commerce. The value of goods sold by leading players is on course to
increase 3-4 times this fiscal. Pepperfry and Urban Ladders are the leaders.
Among market places, Snapdeal has launched and Flipkart, Amazon are exploring. In
this industry, players need to build a specialized supply chain and help in
building the manufacturer ecosystem. Pepperfry is working with manufactures to
build furniture that can be assembled on delivery. Other players are FabFurnish
and Zansaar. Investors in FabFurnish are Rocket Internet. Investors in
Pepperfry are Norwest and Bertelsmann. Investors in Urban Ladder are Steadview,
SAIF Partners, and Kalaari Capital. Investors in Zansaar are Accel and Tiger
Global.
With an estimated market of
$350-400 Billion, the grocery segment is larger than anything else is. It is
also challenging. One needs to build Hyper-local sourcing, warehouses, and
supply chain. Expansions across regions are staggered. The exception is
BigBasket, which is in three cities. Other players are Ekstop, LocalBanya,
IndiaMart, Homogennie, and Zopnow. Investors in BigBasket are Ascent Capital
and K Ganesh. Investor in Ekstop is Unilazer. Investor in LocalBanya is Karmvir
Avant Group. Zopnow investors are Accel Partners, Qualcomm, and Times Group.
Hyper-local market is the other
growing category in India. Even if big players enter into market then also
small shops and establishments will make a large percentage of sales. Platforms
like Just Dial, Findable, PriceBaba, and Zopper are looking to bring them online
in multiple ways. BookMyShow is doing the same with ticket bookings in arts and
entertainment. Just dial the largest local search player with revenues of Rs.
561 crore in 2013-14 extended into transactions this January, enabling services
like doctor appointments and flower deliveries. Zopper and PriceBaba are also
expanding quickly. With smartphones and data connections, their numbers are
expected to increase. Investors in Just Dial are Tiger Global, SAIF Partners,
and Sequioa. Investors in Zopper are Tiger Global, Nirvana Ventures, and Blume.
Some e-commerce websites are
differentiating by targeting niche customer profiles. GreenDust sells factory
second and refurbished consumer electronic products at a 10% - 76% discount to
market price. Limeroad is a social shopping platform focused on women that also
offers users tools to curate and share collections offline. Onemi sells
products only on equated monthly installment even to customers who do not have
a credit card. Overcart is also a new startup. Investors in GreenDust are
Lightbox Ventures, Vertex, and Reliance. Investors in Limeroad are Tiger
Global, Matrix Partners, and Lightspeed. Investor in Onemi is VenturEast. Investor
in Overcart is K Ganesh, and GSF Superangels.
Other than these, there are some
smaller specialists in different categories. First is the Babycare category.
Babycare and kids wear products categories are emerging. The leader is Pune
based FirstCry. FirstCry is flanking its online presence with stores – 70
running and 30 more coming this year. It is collaborating International brands
to provide free hospital kits to parents of newborns in about 6,000 hospitals
in top 18 cities. Other players are Babyoye and Hopscotch. Investors in Babyoye
are Tiger Global, Accel, and Helion Ventures. Investors in FirstCry are SIAF
Partners, IDG Ventures, and Unilazer. Investors in Hopscotch are Lion Rock
Capital, and Nisaba Godrej.
Healthcare is one segment where
niche portals have managed to build strong franchises. While focus of
Healthkart is protein supplements and personal care, that of Lenskart is eye
care. It expects post revenue of Rs. 100 crore this fiscal. Other startups in
this segment are Healthadda, Helathgenie, and Saralhealth. Investors in
Healthkart are Intel Capital, Sequoia, and Kae Capital. Investors in Lenskart
are Unilazer Ventures and IDG ventures.
Stores in general, have failed to
offer Indian women a wide choice of products or a comfortable shopping
experience. Online players are stepping in, offering wide variety of products,
new categories like shapewear and the privacy to shop without human contact. China
largest category in e retailing is apparel. Online players are PrettySecrets,
Koovs, and Zivame. Large players like Flipkart, Myntra could acquire them to
make these brands anchor tenants on their website. Investors in PrettySecrets
are Rehan Yar Khan. Investors in Zivame are Unilazer Ventures, IDG Ventures,
and Kalaari Capital.
India’s appetite for jewellery is
growing every year. Players are entering into online platforms and Bluestone,
Caratlane are some established players. Investors in Bluestone are Accel
Partners, Kalaari Capital, and K Ganesh. Investors in Caratlane are Tiger
Global. Online business is also growing in Food Chains sector. Platforms like
Zomato and TastyKhana are offering in wide categories. While Zomato is into
restaurants chains and it is Google of Food, TastyKhana delivers your food in
quick span of time. Medical shops are also entering into online selling and
delivering of medicines. Apollo Pharmacy, 98.4, and local keepers are entering.
In flower delivery service, Ferns & Petals, and other players are emerging.
Taxi and Ride booking is also emerging at a rapid pace. Electronic stores,
customize printing business, fruits and vegetables, are some other categories where business is
growing. It is expected that after five years everything in India will be
available online.
