Cashback News – Mar 2: India e-commerce news and update

Cashback News – Mar 2: India e-commerce news and update

- in E-Commerce, Slider

India e-commerceThere’s lots going on in e-commerce in India and we’ve got news and highlights to keep you up-to-date. Retail in India will grow to $1.3 trillion by 2020 with $120 billion to come from ecommerce. In 2016, e-commerce will grow to $38 billion. Flipkart shuttered its grocery delivery Nearby app after less than five months due to intense competition. Flipkart became India’s first mobile app to hit 50 million downloads and it receives 47% of all mobile e-commerce traffic in India according to SimilarWeb.

Amazon acquired Emvantage in order to build its online payment platform in India. According to Morgan Stanley, in 2015 Amazon (-3%) and Snapdeal’s (-6%) market share dropped slightly while Flipkart maintained its market share and several small competitors grew by 8%. The big three still dominate with 83% of the e-commerce market. despite raising $36 million five months ago, grocery startup PepperTap closed operations in six cities.

After a $23 million investment, partly led by Amazon, Housejoy acquired laundry and cleaning company MyWashSnapdeal COO Rohit Bansal predicts 2016 will be a slower here for VC investment in the e-commerce sector. Now valued at more than $1.5 billion and with more than 12,000 restaurant clients, Zomato will drop commissions to cut competition.

Ecommerce Landscape of India [2016] is big and it is here to stay. How much is the potential for growth? The retail sector in India is set to grow to grow to $1.3 trillion by 2020. Of this $120 billion is expected to come from ecommerce. Ecommerce has witnessed tremendous growth and has grown from $17 billion in 2014 to $23 billion in 2015. It is expected to see a 67% jump in 2016 from $23 Billion to $38 Billion.

According to Google, mobile searches have taken over desktop queries and a similar trend is expected to follow in the ecommerce searches as well. It is estimated that m-commerce can contribute up to 70% of the total revenue of the players in the industry. According to a McKinsey & Co. estimate, about 1 billion people in India are yet to connect to the internet. This also presents a great opportunity for the major ecom players to tap into.

Currently, Amazon is the most visited ecommerce site in the country (according to comScore) followed by Flipkart, Snapdeal and Paytm. These belong to the ‘horizontal ecommerce’ category as they sell products from a large number of categories. On the other hand are the vertical players that are specialists in one or a few categories of products only. The most visited sites among this category are Jabong, Limeroad followed by Myntra. Via

Flipkart shuts grocery delivery app Nearby’s largest e-commerce firm Flipkart Ltd will shut its groceries delivery app, Nearby, less than five months after the company started testing it, two people familiar with the matter said.

The Nearby app was launched as an experiment by Flipkart in Bengaluru in October. The company promised to deliver fruits, vegetables, soaps and other staples from supermarkets to customers within an hour of receiving an order. However, because it was a pilot, Flipkart didn’t market or promote Nearby extensively. Eventually, because of a combination of poor customer demand and a lack of margins, the company will shut the app this month, the two people cited above said on condition of anonymity. Via

Flipkart Becomes 1st Indian Mobile App to Reach 50 Million Downloads’s leading e-commerce company, Flipkart, having a net valuation of more than $15 billion has become one of the most popular apps globally on Google Play by reaching the 50M installation mark.

With this feat, Flipkart has also become the first Indian app to reach 50 M installs on various Android devices. As per the statement issued by the company, Flipkart reportedly reached this landmark in the first week of February 2016. Flipkart is also one of the highest rated Indian Shopping app on Google Play having more than 1.7 M ratings with a total score of 4.2/5.

According to SimilarWeb, a website traffic and mobile app analytics company, Flipkart is the leading shopping app in India receiving 47% of the total hits received by all e-commerce portals in India. The report also highlighted that Flipkart and Myntra together received more than 63% of the traffic, and was followed by at 15.86%, and Snapdeal having an estimated traffic of 13.84%. Via

Amazon Acquires Emvantage To Build Its Online Payment Platform In India will acquire startup Emvantage for an undisclosed amount to develop its Indian e-commerce site’s payment platform. In a press announcement, Amazon said the Noida-based company’s employees will start working for Amazon’s payment team after the transaction is completed. Founded in 2012 by chief executive officer Vivek Sagar, Emvantage’s platform includes a payment gateway for online transactions made using credit or debit cards, mobile payment tools that integrate into merchant apps, and a prepaid wallet.

Making it easier for customers to pay for online purchases is a key point of focus for India’s top e-commerce businesses, which include Amazon, Snapdeal, and Flipkart. India’s e-commerce market is expected to be worth $100 billion by 2020, but the country’s credit card penetration rate is still extremely low. Instead, many shoppers pay for e-commerce purchases using online wallets that can be topped up at brick-and-mortar stores, pre-paid cards, or cash on delivery. Via

Etail giants like Snapdeal, Amazon lose market share in 2015; small etailers emerge as real winners and Amazon India lost market share in 2015, according to the research arm of Morgan Stanley, as online shopping options grew rapidly in India and established etailers cut back on discounts. But Flipkart managed to marginally increase its share and the Big Three, despite a fall in combined market share, accounted for more than 80% of the total market.

A Morgan Stanley research report released earlier this month pegged Snapdeal’s and Amazon India’s market share in terms of gross merchandise value at 26% and 12%, respectively, in 2015. A similar report published by the same firm last year had estimated the shares of these two companies at 32% and 15%, respectively, for 2014.

While Flipkart maintained its number one slot and increased its share from 44% to 45%, the combined market share of India’s top three ecommerce companies fell from 91% to 83%. Paytm remained steady with 7% market share. The real gainers were small and more-focussed online retailers who saw a jump from 2% to 10%. Via

More troubles for India foodtech; PepperTap closes operations in six cities months ago the grocery delivery startup raised US$36 million and said it wanted to a presence in a total of 75 cities. With yet another Indian foodtech startup navigating troubled waters, it is becoming increasingly difficult to project if the industry will find a bridge.

Yesterday, the hyperlocal grocery delivery service PepperTap confirmed it will pull out of six cities — including the major metro areas of Mumbai, Chennai and Kolkata, according to various India media reports. Via

India’s Housejoy Makes First Acquisition Following $23M Round Led by Amazon, the India-based home services on-demand company backed by Amazon, has made its first acquisition after it snapped up on-demand laundry and cleaning company MyWash.

The undisclosed deal comes a little over a month after Housejoy closed a $23 million Series A that was led by Amazon. Speaking to TechCrunch at the time of the funding, Housejoy CEO Saran Chatterjee said that the company had set aside $2 million for strategic acquisitions to “give us a position of strength in a city or category, or [add to the] team and talent.” While we don’t know the size of this deal, it is almost certainly the first of many. Via

Many companies are worried that 2016 might be a slow year: Rohit Bansal is already ahead of competition, says Rohit Bansal, co-founder and chief operating officer of the Gurgaon-based e-commerce company. Ahead of an industry event in Bengaluru, the city which houses the headquarters of both Amazon and Flipkart, Bansal spoke to Nivedita Mookerji and Raghu Krishnan on the slowing investment scenario, the vision to multiply the number of transacting users on the Snapdeal platform, profitability targets, fundraising, valuation, competition and acquisitions, among other issues. Edited excerpts:

What will be the core themes for 2016 at Snapdeal?
Year 2015 was all about scaling up the technology team and intensifying efforts on logistics and payments through significant acquisitions. While we’ll remain focused on those themes this year, we want to go beyond to make the best of the emerging trends in e-commerce such as micro-consumption on a variety of things because of widespread use of smart phones. If earlier people were consuming internet like lunch, now they are snacking every few hours. Via

Zomato to Change Its Business Model. Looks to Wipe Out Competition a week after Zomato turned profitable in 6 markets, the company has decided to change their business model in order to wipe out remaining competition once and for all. Zomato cofounder Pankaj Chaddha has said that the company will stop charging commission from restaurants covered by it ! The new business model is expected to apply to orders generated from platform as well as to last mile delivery services.

The company currently charges 10-15 % commission per order. The commission depends on the rating of the restaurant – the better the restaurant, less is the commission. The company today has about 12,000 restaurants on board in India alone. Via

What’s ahead for e-commerce in India?

VC interest remains strong but we expect to see more emphasis on shorter horizons for profitability as well as a number of mergers and acquisitions as players try to grow quickly.

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