The project analyses the mergers and acquisitions that have happened in the e-commerce industry and tries to comment on whether the valuations are justified. It also discusses the sustainability of the current discount model the industry is following.
The document provides an overview of the e-commerce industry in India. It discusses the growth of the e-commerce market, which is expected to reach $200 billion by 2026 from $38.5 billion in 2017. Rising internet penetration is a key driver, with internet users in India projected to increase to 829 million by 2021. The online retail market is valued at $17.8 billion in 2017 and is growing rapidly. Electronics and apparel are the largest categories currently. Strategies adopted by e-commerce players include expansion, ancillary services, assisted commerce and personalized experiences. Key growth drivers include increasing awareness, investment and government initiatives like Digital India.
- The Indian e-commerce industry is growing rapidly and is expected to surpass the US to become the second largest e-commerce market by 2034.
- E-commerce sales in India are expected to reach $64 billion by 2020 and $200 billion by 2026, driven by rising internet penetration and growing consumer wealth.
- Private equity and venture capital investment in Indian e-commerce reached a record $11.2 billion in the first half of 2017 as the sector attracts more funding.
India's ecommerce market is growing rapidly despite being smaller than other Asian markets currently. It is expected to increase over five times between 2012 and 2016. While online shopping penetration is still low in India, growth is being driven by increasing investment from venture capitalists, the expansion of online grocery shopping, and the targeting of customers outside major metropolitan areas. To succeed, companies must localize their payment options, like cash on delivery which remains very popular, and address the logistical challenges of deliveries across India's diverse regions. Localization of these key areas will be necessary to capitalize on the major opportunities in India's emerging ecommerce sector.
The document discusses strategies adopted by e-commerce companies in India. Some key points:
1. E-commerce companies are expanding to different cities, regions, and countries to reach more customers. They are also expanding their product ranges.
2. Companies are focusing on personalization, localization, and customization to better understand customer preferences in different areas.
3. Logistics and fast delivery are important for customer satisfaction. E-commerce players are partnering with logistics companies and setting up fulfillment centers for efficient delivery.
- The Indian e-commerce industry is growing rapidly and is expected to surpass the US to become the second largest e-commerce market by 2034.
- Rising internet penetration is fueling growth in the e-commerce sector, with internet users in India projected to increase from 391 million in 2016 to 700 million by 2020.
- The e-commerce market in India is expected to grow from $30 billion in 2016 to $120 billion in 2020, representing the highest annual growth rate in the world for e-commerce.
The Indian e-commerce sector has seen significant investment and growth in recent years, raising questions around whether it represents a boom or bubble. While companies like Flipkart and Snapdeal have raised billions in funding and seen high valuations, they also reported significant losses in 2014. There are positive factors like India's young population and rising incomes, but also challenges around infrastructure, regulations, and the need to eventually become profitable. Overall the document cautions against overly exuberant comparisons to China's e-commerce growth, arguing India's market and users are still nascent compared to China, and profitability and a sustainable growth plan will be important for the long-term success of the sector.
With 20% of the Indians connected over internet and Smartphones, there has not been a more exciting and challenging time in the history of Indian retail.
Consumer is moving ahead of time and with multiple avenues of shopping - be it online, social or mobile - customers have been spoilt for choice.
With millions of Indian buying online and billions of $ of investment pumped in, pure play online retail companies are changing the retail game! An industry which was not even existing 5 years back will clock $4 Billion revenues by end of 2014!
The document provides an overview of the Indian e-commerce industry. It discusses that India has the second largest population in the world and has transformed from an agriculture-based economy to one driven by technology and services. The e-commerce industry in India is growing rapidly, especially among younger internet users. However, the industry faced challenges in 2012 from falling investment and deal activity. The document also outlines upcoming reports on various aspects of the Indian e-commerce industry such as payments, supply chain, and industry analysis.
The document provides an overview of the e-commerce industry in India. It discusses the growth of the e-commerce market, which is expected to reach $200 billion by 2026 from $38.5 billion in 2017. Rising internet penetration is a key driver, with internet users in India projected to increase to 829 million by 2021. The online retail market is valued at $17.8 billion in 2017 and is growing rapidly. Electronics and apparel are the largest categories currently. Strategies adopted by e-commerce players include expansion, ancillary services, assisted commerce and personalized experiences. Key growth drivers include increasing awareness, investment and government initiatives like Digital India.
- The Indian e-commerce industry is growing rapidly and is expected to surpass the US to become the second largest e-commerce market by 2034.
- E-commerce sales in India are expected to reach $64 billion by 2020 and $200 billion by 2026, driven by rising internet penetration and growing consumer wealth.
- Private equity and venture capital investment in Indian e-commerce reached a record $11.2 billion in the first half of 2017 as the sector attracts more funding.
India's ecommerce market is growing rapidly despite being smaller than other Asian markets currently. It is expected to increase over five times between 2012 and 2016. While online shopping penetration is still low in India, growth is being driven by increasing investment from venture capitalists, the expansion of online grocery shopping, and the targeting of customers outside major metropolitan areas. To succeed, companies must localize their payment options, like cash on delivery which remains very popular, and address the logistical challenges of deliveries across India's diverse regions. Localization of these key areas will be necessary to capitalize on the major opportunities in India's emerging ecommerce sector.
The document discusses strategies adopted by e-commerce companies in India. Some key points:
1. E-commerce companies are expanding to different cities, regions, and countries to reach more customers. They are also expanding their product ranges.
2. Companies are focusing on personalization, localization, and customization to better understand customer preferences in different areas.
3. Logistics and fast delivery are important for customer satisfaction. E-commerce players are partnering with logistics companies and setting up fulfillment centers for efficient delivery.
- The Indian e-commerce industry is growing rapidly and is expected to surpass the US to become the second largest e-commerce market by 2034.
- Rising internet penetration is fueling growth in the e-commerce sector, with internet users in India projected to increase from 391 million in 2016 to 700 million by 2020.
- The e-commerce market in India is expected to grow from $30 billion in 2016 to $120 billion in 2020, representing the highest annual growth rate in the world for e-commerce.
The Indian e-commerce sector has seen significant investment and growth in recent years, raising questions around whether it represents a boom or bubble. While companies like Flipkart and Snapdeal have raised billions in funding and seen high valuations, they also reported significant losses in 2014. There are positive factors like India's young population and rising incomes, but also challenges around infrastructure, regulations, and the need to eventually become profitable. Overall the document cautions against overly exuberant comparisons to China's e-commerce growth, arguing India's market and users are still nascent compared to China, and profitability and a sustainable growth plan will be important for the long-term success of the sector.
With 20% of the Indians connected over internet and Smartphones, there has not been a more exciting and challenging time in the history of Indian retail.
Consumer is moving ahead of time and with multiple avenues of shopping - be it online, social or mobile - customers have been spoilt for choice.
With millions of Indian buying online and billions of $ of investment pumped in, pure play online retail companies are changing the retail game! An industry which was not even existing 5 years back will clock $4 Billion revenues by end of 2014!
The document provides an overview of the Indian e-commerce industry. It discusses that India has the second largest population in the world and has transformed from an agriculture-based economy to one driven by technology and services. The e-commerce industry in India is growing rapidly, especially among younger internet users. However, the industry faced challenges in 2012 from falling investment and deal activity. The document also outlines upcoming reports on various aspects of the Indian e-commerce industry such as payments, supply chain, and industry analysis.
The document provides an overview of the e-commerce industry in India. Some key points:
- The Indian e-commerce market is expected to grow from $15.6 billion in 2016 to $64 billion in 2020, representing a CAGR of 44.8%.
- Rising internet penetration, expected to reach 700 million users by 2020, will drive growth in e-commerce.
- Electronics currently accounts for the largest segment of the e-commerce retail market in India at 47%.
The document provides an overview of the e-commerce industry in India. Some of the key points summarized are:
- The Indian e-commerce market is expected to grow from $38.5 billion in 2017 to $200 billion by 2026, driven by rising internet and smartphone penetration. Electronics currently accounts for the largest segment.
- Logistics is a major component supporting e-commerce growth and the e-commerce logistics market is projected to increase from $460 million in 2016 to $2.2 billion by 2020.
- Major players like Flipkart, Amazon and Snapdeal are investing heavily in expanding product categories and regions to capitalize on the fast growing e-commerce opportunity in India. The
- The Indian e-commerce industry has grown rapidly and is expected to surpass the US to become the second largest e-commerce market by 2034.
- E-commerce sales in India are expected to grow from US$38.5 billion in 2017 to US$200 billion by 2026, driven by rising internet and smartphone penetration.
- Electronics currently accounts for the largest share of the e-commerce retail market at 47%, followed by apparel at 31%.
- The Indian e-commerce market is expected to grow from $38.5 billion in 2017 to $64 billion by 2020 and $200 billion by 2026, driven by growing internet penetration.
- Electronics currently accounts for 48% of online retail sales, followed by apparel at 29%.
- Online retail currently makes up only 1.5-5% of total retail in India but is growing rapidly, expected to reach 5-10% by 2020.
- The e-commerce retail logistics market in India is estimated at $1.35 billion in 2018 and is projected to grow at a 36% compound annual growth rate over the next five years.
Indian E commerce (Online Retail and Banking)Eshant Sharma
The document discusses the growth of e-commerce in Asia Pacific and globally. It notes that Asia Pacific has emerged as the strongest B2C e-commerce region in the world, with China, the US, and India having the largest sales. While China's e-commerce sales reached $328 billion in 2013, India's sales were only $10.7 billion due to lower internet penetration. The document also outlines India's demographic profile of online users, trends in online orders and funding of Indian e-commerce companies.
- The e-commerce market in India was valued at INR X billion in 2016 and is expected to reach INR Y billion by 2020, growing at a CAGR of around A%.
- Key drivers of growth include increasing internet penetration through affordable smartphones, efforts by online retailers to develop payment options like cash on delivery and mobile wallets, and improvements to logistics infrastructure.
- Major challenges include the potential effects of the new Goods and Services Tax law, increasing false orders, and losses from cash on delivery payments.
The document provides an overview of the e-commerce industry in India. Some key points:
- The Indian e-commerce market is expected to grow from US$38.5 billion in 2017 to US$200 billion by 2026, registering strong growth.
- Rising internet and smartphone penetration are major drivers of growth in the e-commerce sector in India. Internet users are expected to increase to 829 million by 2021 from 481 million in 2017.
- Electronics currently accounts for the largest share (47%) of the e-commerce retail market in India. Apparel accounts for the second largest share (31%).
- Logistics is a major component of the e-commerce industry in India, expected to grow
Macro-economic factors such as inflation, interest rates, unemployment, GDP, per capita income, and number of internet users all impact the e-commerce industry. When inflation is high, prices rise which can discourage purchases. Low interest rates encourage borrowing. Unemployment affects both supply and demand. GDP growth directly impacts e-commerce growth. Higher per capita income increases purchasing power. More internet users fuel e-commerce growth. Government policies aim to develop the economy and expand e-commerce access. The pandemic increased e-commerce revenue as people shopped online to avoid going out.
This document summarizes the status of e-commerce in India. Some key points:
- E-commerce in India has grown rapidly from $3.8 billion in 2009 to an estimated $12.6 billion in 2013. However, internet penetration remains low at 11%.
- Most e-commerce transactions in India are B2B, with B2C accounting for a smaller share that has grown from 10% in 2011 to 16% in 2012.
- Allowing FDI in B2C e-commerce is debated as proponents believe it could boost sectors like manufacturing, SMEs, and jobs, while opponents argue the Indian market is not ready for more opening.
evolution of e-commerce in the past decade and styletag as a trendsetterRain Chatterjee
The document discusses the evolution of e-commerce in India over the past decade and analyzes Styletag as an emerging trendsetter in the industry. It provides an overview of Styletag, including its founding, merchandising process, marketing strategies, and customer base. The document also examines drivers of the growth of e-commerce in India, forecasting that online retail sales will reach over $1 trillion by 2020. It identifies Styletag's target audience as primarily the 19-30 age group with an annual income between $2,500-10,000.
The document provides an overview of the e-commerce industry in India. Some key points:
- The Indian e-commerce market is expected to grow from US$38.5 billion in 2017 to US$200 billion by 2026, registering a CAGR of over 11%.
- Rising internet penetration, which is expected to reach 700 million users by 2020, will drive growth in e-commerce.
- The government's Digital India initiative and FDI policies are helping to attract investment and support the growth of the industry.
The document provides information about the Indian e-commerce industry. It defines e-commerce and discusses the history and growth of e-commerce in India. Some of the major players in the Indian e-commerce space are discussed like Flipkart, Snapdeal, Myntra, MakeMyTrip and RedBus. The different models of e-commerce like B2B, B2C and C2C are explained. Strategies to achieve success and common challenges in e-commerce are also highlighted. Primary data analysis is conducted to understand perceptions of gender and students/working professionals towards e-commerce in India.
Factors affecting growth of E Business in IndiaAyaz Shariff
The document discusses factors affecting the growth of e-business in India and its impact on small and medium enterprises (SMEs). It identifies several barriers to e-business growth in India, including issues related to information technology/security, customer perceptions, technology, infrastructure, regulations, and user interfaces. However, e-business provides opportunities for SMEs to expand into global markets at reduced costs. The document proposes a model for e-business in rural agricultural markets to connect farmers, traders, and consumers.
Funded by large global investors, the e-tailing market in India is growing exponentially. Going forward, what are the megatrends likely to emerge in this market?
Are still not aware of growing number of internet users in India? Check this infogarphic for facts about mobile eCommerce & key drivers of India eCommerce. #IndiaeCommerce #eZdiaContentCreationPlatform #ContentCreation
Online shopping of physical goods in India will grow to $8.5 billion in 2016, with the number of online shoppers more than doubling to 40 million. Key factors driving this growth include increased mobile shopping, rising order values, growth of fashion e-commerce, and more online penetration in tier-2 and tier-3 towns. Women will also influence 35% of online sales, up from 7% in the previous year.
Ecommerce in India has grown rapidly, with the market estimated at Rs. 43,930 crore in 2013. India ranks third globally in internet users after China and the US. While ecommerce has seen strong growth, it still accounts for only about 1.5% of total retail sales due to low internet penetration from poor infrastructure. The industry is dominated by the travel segment at over 70% of transactions, while e-retail accounts for around 12.5%. E-retailing in particular is growing quickly at a 30.5% CAGR but still only makes up 0.2% of total retail sales in India. Allowing foreign direct investment in business-to-consumer ecommerce could provide needed funding
For the complete report, get in touch with us at : info@netscribes.com
A steady rise in the disposable income coupled with tremendous usage of internet in India, is primarily inflicting growth in the Indian e-Commerce market. Factors such as the busy lifestyle of the working class and a tendency to save time are further fueling growth in the market. Currently, the market is estimated to be valued at INR 0.5 tr and is expected to grow at a CAGR of 47% to reach INR 2.2 tr by 2015.
The report commences with an Introduction section which comprises of an illustration of the e-Commerce work model wherein it depicts the work flow of all the stakeholders involved in the market space. Another detailed illustration about the transaction flow model of an online commerce model is also included in the report so as to provide a better picture of the overall transaction system. Market Overview section of the report talks about the overall market’s size and growth prospects in India, market segments and their respective shares and also highlights the primary aspects influencing growth in the market. Moving along, e-Commerce Market Segments section in the report elaborates on the basic five market segments, wherein it lists their respective market shares, growth drivers and their sub-segments, thereby providing very detailed information about the available segments of e-Commerce.
e-Commerce Ecosystem section is graphical representation of the various layers which constitute the online commerce system. The layers identified in the system include ‘Internet Infrastructure’, ‘Application Infrastructure’, ‘Intermediaries’ and ‘e-Commerce Companies’. Here, the report explains each and every individual layer in detail along with relevant individual examples so as to provide the reader with a better understanding. Types of e-Commerce section in the report comprises of a list of the most popular e-Commerce business models. Description about each and every individual model along with a real life example can be found in this section. Technology used in e-Commerce portion of the report mainly deals with the technical specifications, important features and website design and development stages. It offers a deep and value added information regarding the building and hosting of a successful e-Commerce website.
An analysis of the Drivers and Challenges explains the major factors pushing the market including increased spending power, extensive usage of plastic money, increasing internet penetration and PC usage, ease of transaction and Government initiative, whereas the threats identified for the market include secure payment concerns and lack of confidence.
Demand and Supply Perspective section in the report comprises of an in-depth analysis of both the vendor perception and consumer objectives which in turn enlightens a reader on the various important points regarding the supply and demand side of e-Commerce system. It also lists the vital requiremen
The document provides an overview of Nishith Desai Associates, an international law firm with offices in India and abroad. It details the firm's core practice areas including mergers and acquisitions, competition law, taxation, and others. It also lists various awards and recognitions received by the firm and its founders. The firm focuses on providing strategic legal and regulatory advice to multinational and domestic clients, especially in sectors like technology, media, telecom and others.
The document discusses various types of corporate restructuring like mergers, demergers, and reduction of capital. It outlines the key requirements and processes according to Indian law. For mergers and demergers, stock exchange approval is needed and they have listing agreement compliances and norms regarding minimum capital, lock-ins, and non-promoter shareholding. Demergers can provide benefits like separating unrelated businesses and providing better valuation to shareholders. Reduction of capital can help write off losses and correct over-capitalization.
The document provides an overview of the e-commerce industry in India. Some key points:
- The Indian e-commerce market is expected to grow from $15.6 billion in 2016 to $64 billion in 2020, representing a CAGR of 44.8%.
- Rising internet penetration, expected to reach 700 million users by 2020, will drive growth in e-commerce.
- Electronics currently accounts for the largest segment of the e-commerce retail market in India at 47%.
The document provides an overview of the e-commerce industry in India. Some of the key points summarized are:
- The Indian e-commerce market is expected to grow from $38.5 billion in 2017 to $200 billion by 2026, driven by rising internet and smartphone penetration. Electronics currently accounts for the largest segment.
- Logistics is a major component supporting e-commerce growth and the e-commerce logistics market is projected to increase from $460 million in 2016 to $2.2 billion by 2020.
- Major players like Flipkart, Amazon and Snapdeal are investing heavily in expanding product categories and regions to capitalize on the fast growing e-commerce opportunity in India. The
- The Indian e-commerce industry has grown rapidly and is expected to surpass the US to become the second largest e-commerce market by 2034.
- E-commerce sales in India are expected to grow from US$38.5 billion in 2017 to US$200 billion by 2026, driven by rising internet and smartphone penetration.
- Electronics currently accounts for the largest share of the e-commerce retail market at 47%, followed by apparel at 31%.
- The Indian e-commerce market is expected to grow from $38.5 billion in 2017 to $64 billion by 2020 and $200 billion by 2026, driven by growing internet penetration.
- Electronics currently accounts for 48% of online retail sales, followed by apparel at 29%.
- Online retail currently makes up only 1.5-5% of total retail in India but is growing rapidly, expected to reach 5-10% by 2020.
- The e-commerce retail logistics market in India is estimated at $1.35 billion in 2018 and is projected to grow at a 36% compound annual growth rate over the next five years.
Indian E commerce (Online Retail and Banking)Eshant Sharma
The document discusses the growth of e-commerce in Asia Pacific and globally. It notes that Asia Pacific has emerged as the strongest B2C e-commerce region in the world, with China, the US, and India having the largest sales. While China's e-commerce sales reached $328 billion in 2013, India's sales were only $10.7 billion due to lower internet penetration. The document also outlines India's demographic profile of online users, trends in online orders and funding of Indian e-commerce companies.
- The e-commerce market in India was valued at INR X billion in 2016 and is expected to reach INR Y billion by 2020, growing at a CAGR of around A%.
- Key drivers of growth include increasing internet penetration through affordable smartphones, efforts by online retailers to develop payment options like cash on delivery and mobile wallets, and improvements to logistics infrastructure.
- Major challenges include the potential effects of the new Goods and Services Tax law, increasing false orders, and losses from cash on delivery payments.
The document provides an overview of the e-commerce industry in India. Some key points:
- The Indian e-commerce market is expected to grow from US$38.5 billion in 2017 to US$200 billion by 2026, registering strong growth.
- Rising internet and smartphone penetration are major drivers of growth in the e-commerce sector in India. Internet users are expected to increase to 829 million by 2021 from 481 million in 2017.
- Electronics currently accounts for the largest share (47%) of the e-commerce retail market in India. Apparel accounts for the second largest share (31%).
- Logistics is a major component of the e-commerce industry in India, expected to grow
Macro-economic factors such as inflation, interest rates, unemployment, GDP, per capita income, and number of internet users all impact the e-commerce industry. When inflation is high, prices rise which can discourage purchases. Low interest rates encourage borrowing. Unemployment affects both supply and demand. GDP growth directly impacts e-commerce growth. Higher per capita income increases purchasing power. More internet users fuel e-commerce growth. Government policies aim to develop the economy and expand e-commerce access. The pandemic increased e-commerce revenue as people shopped online to avoid going out.
This document summarizes the status of e-commerce in India. Some key points:
- E-commerce in India has grown rapidly from $3.8 billion in 2009 to an estimated $12.6 billion in 2013. However, internet penetration remains low at 11%.
- Most e-commerce transactions in India are B2B, with B2C accounting for a smaller share that has grown from 10% in 2011 to 16% in 2012.
- Allowing FDI in B2C e-commerce is debated as proponents believe it could boost sectors like manufacturing, SMEs, and jobs, while opponents argue the Indian market is not ready for more opening.
evolution of e-commerce in the past decade and styletag as a trendsetterRain Chatterjee
The document discusses the evolution of e-commerce in India over the past decade and analyzes Styletag as an emerging trendsetter in the industry. It provides an overview of Styletag, including its founding, merchandising process, marketing strategies, and customer base. The document also examines drivers of the growth of e-commerce in India, forecasting that online retail sales will reach over $1 trillion by 2020. It identifies Styletag's target audience as primarily the 19-30 age group with an annual income between $2,500-10,000.
The document provides an overview of the e-commerce industry in India. Some key points:
- The Indian e-commerce market is expected to grow from US$38.5 billion in 2017 to US$200 billion by 2026, registering a CAGR of over 11%.
- Rising internet penetration, which is expected to reach 700 million users by 2020, will drive growth in e-commerce.
- The government's Digital India initiative and FDI policies are helping to attract investment and support the growth of the industry.
The document provides information about the Indian e-commerce industry. It defines e-commerce and discusses the history and growth of e-commerce in India. Some of the major players in the Indian e-commerce space are discussed like Flipkart, Snapdeal, Myntra, MakeMyTrip and RedBus. The different models of e-commerce like B2B, B2C and C2C are explained. Strategies to achieve success and common challenges in e-commerce are also highlighted. Primary data analysis is conducted to understand perceptions of gender and students/working professionals towards e-commerce in India.
Factors affecting growth of E Business in IndiaAyaz Shariff
The document discusses factors affecting the growth of e-business in India and its impact on small and medium enterprises (SMEs). It identifies several barriers to e-business growth in India, including issues related to information technology/security, customer perceptions, technology, infrastructure, regulations, and user interfaces. However, e-business provides opportunities for SMEs to expand into global markets at reduced costs. The document proposes a model for e-business in rural agricultural markets to connect farmers, traders, and consumers.
Funded by large global investors, the e-tailing market in India is growing exponentially. Going forward, what are the megatrends likely to emerge in this market?
Are still not aware of growing number of internet users in India? Check this infogarphic for facts about mobile eCommerce & key drivers of India eCommerce. #IndiaeCommerce #eZdiaContentCreationPlatform #ContentCreation
Online shopping of physical goods in India will grow to $8.5 billion in 2016, with the number of online shoppers more than doubling to 40 million. Key factors driving this growth include increased mobile shopping, rising order values, growth of fashion e-commerce, and more online penetration in tier-2 and tier-3 towns. Women will also influence 35% of online sales, up from 7% in the previous year.
Ecommerce in India has grown rapidly, with the market estimated at Rs. 43,930 crore in 2013. India ranks third globally in internet users after China and the US. While ecommerce has seen strong growth, it still accounts for only about 1.5% of total retail sales due to low internet penetration from poor infrastructure. The industry is dominated by the travel segment at over 70% of transactions, while e-retail accounts for around 12.5%. E-retailing in particular is growing quickly at a 30.5% CAGR but still only makes up 0.2% of total retail sales in India. Allowing foreign direct investment in business-to-consumer ecommerce could provide needed funding
For the complete report, get in touch with us at : info@netscribes.com
A steady rise in the disposable income coupled with tremendous usage of internet in India, is primarily inflicting growth in the Indian e-Commerce market. Factors such as the busy lifestyle of the working class and a tendency to save time are further fueling growth in the market. Currently, the market is estimated to be valued at INR 0.5 tr and is expected to grow at a CAGR of 47% to reach INR 2.2 tr by 2015.
The report commences with an Introduction section which comprises of an illustration of the e-Commerce work model wherein it depicts the work flow of all the stakeholders involved in the market space. Another detailed illustration about the transaction flow model of an online commerce model is also included in the report so as to provide a better picture of the overall transaction system. Market Overview section of the report talks about the overall market’s size and growth prospects in India, market segments and their respective shares and also highlights the primary aspects influencing growth in the market. Moving along, e-Commerce Market Segments section in the report elaborates on the basic five market segments, wherein it lists their respective market shares, growth drivers and their sub-segments, thereby providing very detailed information about the available segments of e-Commerce.
e-Commerce Ecosystem section is graphical representation of the various layers which constitute the online commerce system. The layers identified in the system include ‘Internet Infrastructure’, ‘Application Infrastructure’, ‘Intermediaries’ and ‘e-Commerce Companies’. Here, the report explains each and every individual layer in detail along with relevant individual examples so as to provide the reader with a better understanding. Types of e-Commerce section in the report comprises of a list of the most popular e-Commerce business models. Description about each and every individual model along with a real life example can be found in this section. Technology used in e-Commerce portion of the report mainly deals with the technical specifications, important features and website design and development stages. It offers a deep and value added information regarding the building and hosting of a successful e-Commerce website.
An analysis of the Drivers and Challenges explains the major factors pushing the market including increased spending power, extensive usage of plastic money, increasing internet penetration and PC usage, ease of transaction and Government initiative, whereas the threats identified for the market include secure payment concerns and lack of confidence.
Demand and Supply Perspective section in the report comprises of an in-depth analysis of both the vendor perception and consumer objectives which in turn enlightens a reader on the various important points regarding the supply and demand side of e-Commerce system. It also lists the vital requiremen
The document provides an overview of Nishith Desai Associates, an international law firm with offices in India and abroad. It details the firm's core practice areas including mergers and acquisitions, competition law, taxation, and others. It also lists various awards and recognitions received by the firm and its founders. The firm focuses on providing strategic legal and regulatory advice to multinational and domestic clients, especially in sectors like technology, media, telecom and others.
The document discusses various types of corporate restructuring like mergers, demergers, and reduction of capital. It outlines the key requirements and processes according to Indian law. For mergers and demergers, stock exchange approval is needed and they have listing agreement compliances and norms regarding minimum capital, lock-ins, and non-promoter shareholding. Demergers can provide benefits like separating unrelated businesses and providing better valuation to shareholders. Reduction of capital can help write off losses and correct over-capitalization.
Mergers and acquisitions have become more popular in India since 1988. A merger occurs when two companies combine to form a single new entity, while an acquisition happens when one company takes over another. There are several types of mergers and acquisitions including horizontal, vertical, and conglomerate transactions. Companies pursue mergers and acquisitions to achieve economies of scale, eliminate competition, gain access to new markets, and diversify their business portfolio. However, major integrations can also lead to increased complexity, culture clashes, and difficulties achieving synergies. Regulatory approvals from agencies like SEBI and the Competition Commission of India are required for large transactions.
This presentation enumerates the practical aspects of merger, demerger and reduction of capital and the strategies involved therein. It also highlights certain key issues involved in corporate restructuring.
The document outlines the legal procedures for mergers and amalgamation in India. It discusses 23 steps in the process, including getting board approval, notifying stock exchanges, applying to the High Court, holding shareholder and creditor meetings, getting High Court sanction, transferring assets and liabilities, and filing documents with the registrar of companies. It also lists the largest mergers and acquisitions deals in India, led by Tata Steel's acquisition of Corus for $12.2 billion.
For full text article go to : http://www.educorporatebridge.com/mergers-and-acquisitions/mergers-and-acquisitions-in-india/
Know all about mergers and acquisitions in India right from its history, recent trends, drivers for growth, challenges, future outlook and much more.
The document provides an overview of mergers and acquisitions under the Companies Act 2013. It discusses various tools of restructuring like merger, amalgamation, demerger, acquisition of shares, etc. It describes different types of mergers like horizontal, vertical, conglomerate mergers. It explains the process of a merger, fast track merger, cross border merger and addresses related concepts like minority exit opportunity, merger of listed and unlisted companies, tax laws, and judicial pronouncements regarding M&A. In summary, the document covers the key concepts, processes, regulations and case laws pertaining to mergers and acquisitions in India.
Mergers & Acquisitions-Corporate Restructuring-B.V.RaghunandanSVS College
The document discusses various methods of corporate restructuring including mergers, acquisitions, divestitures, joint ventures, leveraged buyouts, and more. It provides details on each method, such as the process involved, examples, advantages, and disadvantages. Common reasons for restructuring include globalization, competition, and improving performance.
Corporate restructuring involves merging, acquiring, divesting or reorganizing assets and liabilities within a company or between different companies in order to improve efficiency and performance. Sections 391-394 of the Companies Act, 1956 provide the most liberal provisions for carrying out restructuring through schemes of arrangement, which allow companies to achieve complex restructuring objectives with approval of the High Court. Common types of restructuring include mergers, demergers, and reduction of capital. Companies must comply with listing agreements, stock exchange norms, and other applicable laws when undertaking corporate restructuring.
This presentation enumerates the practical aspects of merger, demerger and reduction of capital and the strategies involved therein. It also highlights certain key issues involved in corporate restructuring.
This document discusses organizational restructuring and mergers and acquisitions. It defines organizational restructuring as changes made to personnel, departments, and reporting structures to meet market needs. Causes of restructuring include changing strategies, structural types, downsizing, and expanding. Mergers and acquisitions combine two companies and require restructuring the new organization. Managing change and employee attitudes is important for a successful restructuring.
The document discusses mergers and provides details about the merger between HDFC Bank and Centurion Bank of Punjab in 2009. It was one of the largest mergers in the banking sector in India. The merger added 394 branches and 19% more assets to HDFC Bank. It increased HDFC Bank's network making it the largest private bank in India. The merger provided synergies around products, management expertise, and geographic expansion. However, HDFC Bank had to write-off Rs. 70 crores to harmonize accounting policies between the two banks.
A merger is a combination of two firms where one ceases to exist and the other takes over its assets and liabilities, forming an entirely new company. An amalgamation is similar but the original firms remain, with their assets and liabilities transferred to a new combined firm. An acquisition occurs when one company takes controlling interest of another, sometimes through a hostile takeover. Major recent mergers and acquisitions in India include Tata Steel-Corus, Vodafone-Hutchison Essar, and Tata Motors-Jaguar Land Rover. Companies pursue mergers and acquisitions to improve economies of scale, gain market leadership, and access new markets and technologies.
This document presents information on mergers and acquisitions (M&A) through a slideshow presentation. It discusses the history of M&A in India, defines mergers and acquisitions, compares the differences between them, and outlines the objectives, benefits, types, examples, process, strategies, and problems associated with M&A. It also provides details on the recent merger between Tech Mahindra and Satyam, including analysis and outlook. In conclusion, it states that the success of an M&A depends on the planning and strategies of the acquiring company.
A merger occurs when one company purchases another company of a similar size, transferring ownership and control to form a single new company. Companies usually merge when they feel they can accomplish more together than separately. There are three main types of mergers: horizontal, vertical, and conglomerate. Mergers can take place through purchasing assets, purchasing common shares, exchanging shares for assets, or exchanging shares for shares. Reasons for mergers include increasing market share, achieving economies of scale, diversifying risk, and pursuing future goals or expansion of business.
The document discusses mergers and acquisitions (M&A) including conceptual frameworks, types of mergers, history of M&A waves, and the financial framework. It describes different types of mergers such as horizontal, vertical, and conglomerate mergers. It provides examples of major mergers in different sectors such as automobiles, banking, media, and telecommunications. It also discusses M&A activity and deals in India from the license era to the present.
The document discusses various types of mergers and acquisitions including horizontal, vertical, conglomerate, and concentric mergers. It provides examples for each type and explains their key characteristics. Some benefits of mergers include diversification, increased capacity and market share. However, mergers can fail due to issues with cultural integration, communication, and management. Acquisitions differ from mergers in that one company clearly takes ownership of another. Acquisitions aim to achieve economies of scale, staff reductions, new technology, and market reach. Hostile takeovers are strongly resisted while friendly takeovers have management agreement. Firms undertake takeovers to gain market growth, economies of scale, and complementing skills.
Mergers and acquisitions involve the combination of two or more companies. Mergers see the merging companies fully integrate to form an entirely new company, while acquisitions see one company purchase another but maintain separate operations. Mergers and acquisitions allow companies to achieve synergies, diversify, grow, and eliminate competition. Common types of mergers include horizontal, vertical, market extension, product extension, and conglomerate mergers. India has seen several large M&A deals over the years across various industries.
The document discusses mergers and acquisitions, defining a merger as a transaction where two firms integrate operations on an equal basis to create a stronger competitive advantage, while an acquisition is when one firm buys another to make it a subsidiary and more effectively utilize its competencies. It provides examples of major M&A deals in India and compares the differences between mergers and acquisitions.
Ernst and Young rebirth-of ecommerce in India reportVeena Srinath
The document discusses the evolution of e-commerce in India over two waves. The first wave from 1996-2000 saw the launch of early services like online classifieds for jobs and matrimony. Growth was limited due to low internet penetration and an underdeveloped ecosystem. The second wave from 2006 onward brought rapid growth as the ecosystem strengthened with rising internet usage, payment options, and devices. Online travel emerged as the largest segment initially, while retail is now growing rapidly. The future looks promising for e-commerce in India with continued ecosystem development and interest from investors.
There has been a sudden switch in the buying and selling pattern of the customers in all over India, which created the growth of e-commerce industry. This switch can also be noticed in the automobile industry. The online penetration of auto sector in the world market is approx. 0.7% in 2019. It was challenging for automobile ecommerce industry to make it successful in India, but eminent players of India have made it possible. To learn the possibilities and success of auto ecommerce industry go through this document.
The future of E-commerce in India and it's key driversKantinath Banerjee
In this article i am discussing about the near future of Indian E-commerce industry and the certain changes that are on the cards.#Internet #onlinemarketing #digitalmarketing #onlineadvertising #socialmedia #clickandbrick #onlineretail #flipkart #google #paidadvertising
The global e-commerce business generated revenue worth USD 1,042.98 in 2012 and is anticipated to clock a turnover of USD 2,148 billion by 2017, with year-on-year growth rate of 17 percent.
The document outlines the scope and goals of coupon and deals sites in India, including establishing an affiliate marketing site and app in Phase 1, creating an e-commerce marketplace in Phase 2, and launching an employee benefits program in Phase 3. It discusses the growth of the Indian e-commerce industry and affiliate marketing sector. The business projections estimate that the company will become profitable by year 2 and earn over 50 crore rupees in annual revenue by year 10.
- E-commerce in India has grown rapidly over the past two decades as internet and mobile phone penetration has increased.
- Currently, online travel makes up 70% of the e-commerce market, while e-tailing (online retail and marketplaces) is the fastest growing segment.
- Key factors driving growth include expanding internet access, more affordable smartphones, and improved consumer awareness of online shopping options.
The document discusses the growth of eCommerce in India. Some key points:
- Ecommerce in India grew 34% annually from 2009-2014 to reach $16.4 billion, and is expected to reach $21.3 billion in 2015.
- Online retail and marketplaces (eTail) have grown the fastest at 56% annually over 2009-2014, reaching $6 billion in 2015. Books, apparel, and electronics are the largest product categories.
- Growth is fueled by India's large population and demographic dividend of young internet users, as well as expanding internet access. However, internet penetration remains low at only 19% currently.
- Major developments in 2014 include mobile becoming
Tata Croma eCommerce GTM (Go-to-market)Janmejay Dave
The document discusses strategies for Croma, an Indian consumer electronics retail chain, to expand its online presence and compete more effectively with online retailers. It analyzes Croma's strengths and weaknesses, as well as opportunities in the growing Indian e-commerce market. The document proposes several initiatives for Croma, including enhancing the customer experience in stores, focusing on B2B sales, improving its mobile and CRM capabilities, expanding its retail footprint, and partnering with Green Dust, an online used goods retailer.
1. The document discusses how e-commerce is becoming an important part of global expansion strategies for retailers. It ranks the top 30 developing countries based on their e-commerce potential in the 2012 E-Commerce Index.
2. China ranks first due to its large online retail market of $23 billion and fast growth rate. Brazil ranks second with the largest e-commerce market in Latin America. Russia ranks third but has infrastructure issues hampering its online growth.
3. The top countries demonstrate strong online market attractiveness and infrastructure to support e-commerce, though some have cultural or regulatory barriers still to overcome. E-commerce allows retailers to test new markets at low risk before traditional expansion.
The digital-dna-the-state-of-emarketing-in-indiaSaurabh Agrawal
The last 5 years have been a great journey for India in reference to online growth. The online users in
India doubled from 120 million users in 2011 to 278 million users in 2014. Mobile also showed
remarkable advancement with 900 million mobile connections and 220 million smartphone shipments
in India in 2014.
The digital-dna-the-state-of-emarketing-in-indiaSumit Roy
The document summarizes the key findings of Octane Research's annual report on the state of e-marketing in India in 2015. Some of the main highlights include:
1) Customer retention is becoming a higher priority for marketers compared to brand awareness.
2) Integrated marketing campaigns are more effective and widely used compared to 5 years ago.
3) Websites remain the primary e-marketing activity, though email marketing is more important for some industries.
4) Content marketing, especially blogs and newsletters, is gaining importance. Social media is also an effective content marketing tool.
5) Reaching target audiences is the biggest email marketing challenge. Inadequate segmentation is also an issue
Ereputation Intelligence for your big data journeyM Kadi
Big Data applies to data sets whose size is beyond the ability of commonly used traditional techniques to capture, manage, and process within a tolerable elapsed time . This is where ERI builds a solid grounding and design infrastructure to drive this innovation forward and boost better outcomes
This document discusses e-commerce in the UAE and the importance of meeting consumer demands through implementing processes and technologies. It highlights that retailers investing in foundational operations like inventory accuracy and visibility will be better able to achieve multichannel fulfillment goals. The potential for e-commerce growth in GCC countries is high, with sales expected to reach $41.5 billion by 2020. Social media, especially Facebook, is very important for online sales and engagement in the UAE. Mobile is also a major platform for e-commerce merchant sales in the region.
eTailing India Launches Big Data Report - 2015 eTailing India
The document discusses the current state of big data in India and its potential impact on eCommerce growth. It notes that big data involves collecting, processing, and applying insights from large, diverse data sets. While still nascent in India, big data is projected to significantly impact eCommerce by providing deeper customer insights and more personalized experiences. Major players are adopting strategies like Hadoop to analyze customer behavior and improve conversions. Widespread adoption is expected to drive industry competition and innovation.
1. The Indian e-commerce market is expected to exceed 100 billion USD by 2022, driven largely by over 150 million new online users from diverse demographic backgrounds.
2. Growth will come from increasing internet penetration and smartphone usage, a booming middle class, and e-commerce players innovating to meet the needs of new users.
3. The government is establishing e-commerce regulations and policies to support growth across segments like e-tail, travel, and financial services, enabling the industry to surpass 100 billion USD.
The document summarizes recent trends in online payments presented by Jenny Homer from Sage Pay. It discusses the growth of mobile commerce and social commerce. It also highlights results from Sage Pay's e-benchmark study, including findings around the untapped potential of mobile apps and challenges of international expansion and accepting foreign currencies. Finally, it discusses the importance of PCI compliance and using a payment service provider to help meet security standards.
Impact of Digital Marketing on eCommerce - Final ReportCybez
This document is a dissertation report submitted by Atul Jain to the Indian Institute of Foreign Trade in partial fulfillment of an MBA degree. The report examines the impact of digital marketing on e-commerce in India. It includes sections on the objectives and methodology of the research, the state of e-commerce in India, types of digital marketing strategies used, research findings, and the future outlook of digital marketing in India. The report provides an overview of the topic while fulfilling degree requirements.
1) Alibaba has launched an app called Yoli in India to enter the Indian e-commerce market and challenge existing players like Amazon, Flipkart, and Paytm Mall. Yoli currently offers deals from these and other platforms and redirects users to make purchases.
2) Amazon made the highest number of offers to students at MDI Gurgaon, with the highest package being Rs. 40.5 lakhs. E-commerce and IT sectors made up about 70 of the total 360 offers.
3) Krishna Raghavan, senior VP of engineering at Flipkart, has moved to a new role as Chief People Officer, effective April. His current engineering role will be backfilled over
Study of e-commerce market for smartphones in IndiaPartha Bose
This is a subset of a market assessment done by IBM in early 2014. The assessment looked at the potential for e-commerce for the smartphone market in India. IBM colleagues, Sanjay Panikkar and Murali Tirupati, worked with me on this study.
Similar to E commerce industry future and the valuation bubble (20)
Part 2 Deep Dive: Navigating the 2024 Slowdownjeffkluth1
Introduction
The global retail industry has weathered numerous storms, with the financial crisis of 2008 serving as a poignant reminder of the sector's resilience and adaptability. However, as we navigate the complex landscape of 2024, retailers face a unique set of challenges that demand innovative strategies and a fundamental shift in mindset. This white paper contrasts the impact of the 2008 recession on the retail sector with the current headwinds retailers are grappling with, while offering a comprehensive roadmap for success in this new paradigm.
3 Simple Steps To Buy Verified Payoneer Account In 2024SEOSMMEARTH
Buy Verified Payoneer Account: Quick and Secure Way to Receive Payments
Buy Verified Payoneer Account With 100% secure documents, [ USA, UK, CA ]. Are you looking for a reliable and safe way to receive payments online? Then you need buy verified Payoneer account ! Payoneer is a global payment platform that allows businesses and individuals to send and receive money in over 200 countries.
If You Want To More Information just Contact Now:
Skype: SEOSMMEARTH
Telegram: @seosmmearth
Gmail: seosmmearth@gmail.com
Discover timeless style with the 2022 Vintage Roman Numerals Men's Ring. Crafted from premium stainless steel, this 6mm wide ring embodies elegance and durability. Perfect as a gift, it seamlessly blends classic Roman numeral detailing with modern sophistication, making it an ideal accessory for any occasion.
https://rb.gy/usj1a2
Best Competitive Marble Pricing in Dubai - ☎ 9928909666Stone Art Hub
Stone Art Hub offers the best competitive Marble Pricing in Dubai, ensuring affordability without compromising quality. With a wide range of exquisite marble options to choose from, you can enhance your spaces with elegance and sophistication. For inquiries or orders, contact us at ☎ 9928909666. Experience luxury at unbeatable prices.
How MJ Global Leads the Packaging Industry.pdfMJ Global
MJ Global's success in staying ahead of the curve in the packaging industry is a testament to its dedication to innovation, sustainability, and customer-centricity. By embracing technological advancements, leading in eco-friendly solutions, collaborating with industry leaders, and adapting to evolving consumer preferences, MJ Global continues to set new standards in the packaging sector.
[To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
This presentation is a curated compilation of PowerPoint diagrams and templates designed to illustrate 20 different digital transformation frameworks and models. These frameworks are based on recent industry trends and best practices, ensuring that the content remains relevant and up-to-date.
Key highlights include Microsoft's Digital Transformation Framework, which focuses on driving innovation and efficiency, and McKinsey's Ten Guiding Principles, which provide strategic insights for successful digital transformation. Additionally, Forrester's framework emphasizes enhancing customer experiences and modernizing IT infrastructure, while IDC's MaturityScape helps assess and develop organizational digital maturity. MIT's framework explores cutting-edge strategies for achieving digital success.
These materials are perfect for enhancing your business or classroom presentations, offering visual aids to supplement your insights. Please note that while comprehensive, these slides are intended as supplementary resources and may not be complete for standalone instructional purposes.
Frameworks/Models included:
Microsoft’s Digital Transformation Framework
McKinsey’s Ten Guiding Principles of Digital Transformation
Forrester’s Digital Transformation Framework
IDC’s Digital Transformation MaturityScape
MIT’s Digital Transformation Framework
Gartner’s Digital Transformation Framework
Accenture’s Digital Strategy & Enterprise Frameworks
Deloitte’s Digital Industrial Transformation Framework
Capgemini’s Digital Transformation Framework
PwC’s Digital Transformation Framework
Cisco’s Digital Transformation Framework
Cognizant’s Digital Transformation Framework
DXC Technology’s Digital Transformation Framework
The BCG Strategy Palette
McKinsey’s Digital Transformation Framework
Digital Transformation Compass
Four Levels of Digital Maturity
Design Thinking Framework
Business Model Canvas
Customer Journey Map
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....Lacey Max
“After being the most listed dog breed in the United States for 31
years in a row, the Labrador Retriever has dropped to second place
in the American Kennel Club's annual survey of the country's most
popular canines. The French Bulldog is the new top dog in the
United States as of 2022. The stylish puppy has ascended the
rankings in rapid time despite having health concerns and limited
color choices.”
Digital Marketing with a Focus on Sustainabilitysssourabhsharma
Digital Marketing best practices including influencer marketing, content creators, and omnichannel marketing for Sustainable Brands at the Sustainable Cosmetics Summit 2024 in New York
Call8328958814 satta matka Kalyan result satta guessing➑➌➋➑➒➎➑➑➊➍
Satta Matka Kalyan Main Mumbai Fastest Results
Satta Matka ❋ Sattamatka ❋ New Mumbai Ratan Satta Matka ❋ Fast Matka ❋ Milan Market ❋ Kalyan Matka Results ❋ Satta Game ❋ Matka Game ❋ Satta Matka ❋ Kalyan Satta Matka ❋ Mumbai Main ❋ Online Matka Results ❋ Satta Matka Tips ❋ Milan Chart ❋ Satta Matka Boss❋ New Star Day ❋ Satta King ❋ Live Satta Matka Results ❋ Satta Matka Company ❋ Indian Matka ❋ Satta Matka 143❋ Kalyan Night Matka..
The Most Inspiring Entrepreneurs to Follow in 2024.pdfthesiliconleaders
In a world where the potential of youth innovation remains vastly untouched, there emerges a guiding light in the form of Norm Goldstein, the Founder and CEO of EduNetwork Partners. His dedication to this cause has earned him recognition as a Congressional Leadership Award recipient.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.AnnySerafinaLove
This letter, written by Kellen Harkins, Course Director at Full Sail University, commends Anny Love's exemplary performance in the Video Sharing Platforms class. It highlights her dedication, willingness to challenge herself, and exceptional skills in production, editing, and marketing across various video platforms like YouTube, TikTok, and Instagram.
IMPACT Silver is a pure silver zinc producer with over $260 million in revenue since 2008 and a large 100% owned 210km Mexico land package - 2024 catalysts includes new 14% grade zinc Plomosas mine and 20,000m of fully funded exploration drilling.
The APCO Geopolitical Radar - Q3 2024 The Global Operating Environment for Bu...APCO
The Radar reflects input from APCO’s teams located around the world. It distils a host of interconnected events and trends into insights to inform operational and strategic decisions. Issues covered in this edition include:
SATTA MATKA SATTA FAST RESULT KALYAN TOP MATKA RESULT KALYAN SATTA MATKA FAST RESULT MILAN RATAN RAJDHANI MAIN BAZAR MATKA FAST TIPS RESULT MATKA CHART JODI CHART PANEL CHART FREE FIX GAME SATTAMATKA ! MATKA MOBI SATTA 143 spboss.in TOP NO1 RESULT FULL RATE MATKA ONLINE GAME PLAY BY APP SPBOSS
2. 2
SUMMARY
E-commerce is the new buzz word in the business scenario and if we count in the rate at which internet
penetration and purchasing power of the average Indian consumer is growing, this model is here to stay. Lot
many deals are happening in the e-commerce market space and the high valuations are what catch the attention.
With so many investors investing billions of rupees in the firms which are registering heavy losses every year,
is expectation of a good future the sufficient reason? When Amazon started, the customer was more loyal to the
firm but in the present, consumer loyalty ratings are dwindling with each one looking for a better, less
expensive offer.
The various mergers and acquisitions happening in the e-commerce space are multi-million dollar deals with
little or no due diligence behind them.
Are we heading into an inevitable E-commerce bubble burst?
The report analyses major deals that have happened in the E-commerce market space and comes up with the
parameters that need to be considered before investing in the acquisition of a firm.
3. 3
INDEX
Topic Page No.
Introduction 06
Growth: Organic or Inorganic 07
Due Diligence 08
Assumptions for Valuation Analysis 09
Parameters for Valuation Analysis 09
E-Retailing SectorAnalysis 11
E-Travel SectorAnalysis 14
Other e-Commerce Deals Analysis 17
Conclusion 20
Bibliography 21
4. 4
List of Tables and Figures
Table Name and No. Page No.
Valuation Factor Calculation: Table 1 10
Flipkart-Data Analysis: Table 2 11
MakeMyTrip-Data Analysis: Table 3 15
Mahindra Retail-Data Analysis: Table 4 17
Yahoo- Data Analysis: Table 5 18
Figure Name and No. Page No.
E-commerce Industry Segmentation: Fig 1 05
Positioning of Value Chain: Fig 2 07
Flipkart-Data Analysis: Fig 3 11
MakeMyTrip-Data Analysis: Fig 4 16
Mahindra Retail-Data Analysis: Fig 5 18
Yahoo- Data Analysis: Fig 6 19
5. 5
1) INTRODUCTION
Over the last two decades, rising internet and mobile phone penetration has changed the way we communicate
and do business. E-commerce is a relatively novel concept. It is, at present, heavily leaning on the internet and
mobile phone revolution to fundamentally alter the way businesses reach their customers.
In 2013, in a survey conducted by PwC, Asia-Pacific emerged as the strongest business-to consumer (B2C) e-
Commerce region in the world with sales of around 567.3 billion USD, a growth of 45% over 2012, ranking
ahead of Europe (482.3 billion USD) and North America (452.4billion USD). Since the e-Commerce industry is
fast rising, changes can be seen over a year. The sector in India has grown by 34% (CAGR) since 2009 to touch
16.4 billion USD in 2014 (2). The sector is expected to be in the range of 22 billion USD in 2015. (1)
The composition of the e-Commerce market can be given as:
(2)
Fig 1: E-commerce sector segmentation
The size of the e-Tail market is pegged at 6 billion USD in 2015. Books, apparel and accessories and electronics
are the largest selling products through e-Tailing, constituting around 80% of product distribution.
The internet user base in India is 243 million which amounts to a penetration of 19%. The mobile user base in
the country stands at 1 billion with a smart-phone penetration of 30%. The projections go as far as expecting
India to form 12% of the global smart-phone market with a 65% penetration by 2019. (1) All these factors
strengthen the belief that e-Commerce will get a big boost in the coming future until of course m-commerce
takes away the charm.
Around 75% of Indian internet users are in the age group of 15 to 34 years. (1) This category shops more than
the remaining population due to several reason which include: peer pressure, rising aspirations with career
growth, fashion and trends etc. all of which favour an e-Commerce growth.
With the change in government, business confidence has significantly improved which is evident in the
improved Sensex. In 2014, investors aggressively funded the e-Commerce sector due to strong growth
71%
20%
5%
4%
Travel Agencies
Retail and Market Place
Financial Services
Classifieds
6. 6
prospects. Several of India’s blue-chip PE firms, which previously avoided investing in e-Commerce, are now
looking for investment opportunities in the sector.
With all these factors in consideration, we will be defining the parameters to measure the effectiveness of the
valuations done in the report. We will also analyze some of the deals that have happened in the e-Commerce
market to ascertain the existing trends that are present in the market.
2) GROWTH: Organic or Inorganic
a) Parameters for Comparison
i) Customer Behaviour: The customer base in e-commerce is not loyal with a customer loyalty of just
39% (3). Also, with the excessive marketing budgets and discount offers involved, Customer
acquisition cost is very high. Thus, inorganic growth is favoured.
ii) Time to Grow: With the increasing competition, any firm cannot take a long time to consolidate its
product variety. Hence, it is better to acquire other businesses to acquire their customer base.
iii) Value Chain requirements: The value chain requirements for the different segments are as under:
(1) Value Chain Components for Travel Agencies
(a) Suppliers: Modes of Transports
(b) Process: Website interface and software development
(c) Marketing Platforms: Mobile apps, online advertisements and social media
(d) After Sales: Technical Support Centers
(2) Value Chain Components for Retail Agencies
(a) Suppliers: Third party suppliers
(b) Process: Website development, Payment Gateways, Logistics and Distribution Network
(c) Marketing Platforms: Mobile apps, online advertisements and social media
(d) After Sales: Return Services (Logistics)
iv) Profit Margins: Most of the companies are currently running in losses. The only factor that is
keeping them going is the investor trust and hence flowing cash into their system. A detailed
analysis of the same is done sector wise later in the report.
b) Conclusion
All the factors mentioned above favour inorganic growth with more focus on vertical integration.
The positioning strategy for the value chain can be defined by the diagram below:
7. 7
Fig 2: Positioning of value chain
However, whether the financials of the company allow the inorganic growth or not will be seen in
the report later.
3) Due diligence in e-Commerce
In India, most of the e-commerce stakeholders are not complying with the legal requirements as prescribed by
the various laws. Even investors are investing money without ensuring that the e-commerce companies are
abiding by the law. Perry4Law (an exclusive techno legal corporate, IP and ICT Law firm) believes that cyber
law due diligence is an absolute must for foreign investors in e-commerce and technology ventures of India.
Right now there is no e-commerce law of India, because of which unfair trade practices and predatory pricing
tactics prevail in the market.
The most common ecommerce due diligence mistakes are:
1. Not realizing the difference between online (ecommerce) due diligence and traditional due diligence.
2. Taking information at the face value.
3. Not looking into owner’s other business ventures.
4. Ignoring the external factors.
5. Not knowing what to look out for.
6. Ignoring minor red flags and not looking at the big picture.
7. Failing to ensure revenue streams are transferable
The most important due diligence questions that need to be asked before undertaking an acquisition are: (4)
1. Is the site going to remain useful in the future or is it one-off thing?
2. Does the business depend on a particular loophole or “trick”?
8. 8
3. Would you actually use the site?
4. Would you be able to market the site without organic traffic?
4) Assumptions for Valuation Analysis
a) All the financials taken in the report have been taken from Capitaline with the assumption that whatever
is available is the only and correct data for the respective company.
b) One important point to be noted is that Flipkart is not a listed company but has still shared some of its
financial data online. The same was available with Capitaline.
c) The cost of goods sold and operating expenses have been derived by considering the trend of Industry
giants namely Amazon, Groupon and Yelp. Since the valuation of Flipkart and other online retailers is
done on the optimism that they would also perform like the former three, the same trends have been
extended to Indian online retailers as well.
d) The value for most of the deals done prior to 2012 is unknown as no deal data has been shared. Most of
these companies are now defunct due to 100% acquisition and were brought when their customer base
was declining. Hence, considering the common business acumen, we assume that these companies have
been valued by a factor less than 1 as is the general trend for the e-commerce industry.
5) Parameters for Valuation Analysis
The parameters for analyzing the valuation are the
a) Financial situation of the buying company: To be discussed specific to the companies for which data is
available.
b) Expected synergies: Will vary as per the rationale behind the acquisition and hence will be company
specific.
c) Financials of the acquired company: Will be company specific; a general trend which is depicted
below shows that companies with growing sales and customer base are over-valued by a factor of 4.8
with certain valuations going as high as 20. The companies which are added only for their strategic or
operational importance and have been performing poorly as per the financials are usually valued under
1.
9. 9
Name of the
Acquirer
Name of the Acquired
Company
Deal Value
(INR)
Stake
Acquired
Valuation of
the Acquired
Company
(INR)
Annual Sales of
the Acquired
Company
(INR)
Valuation
Factor=
Valuation/Sales
MakeMyTrip
Luxury Tours and Travels 3000000 79% 3797468 2700000 1.4
My Guest House
Accommodations 1000000 29% 3448276 1800000 1.9
Ixigo 18500000 76.60% 24151436 4000000 6.0
EasytoBook 5000000 100% 5000000 136000000 0.04
Thomas cook Sterling Holiday Resorts 140006437 100% 140006437 26000000 5.4
Yatra
Travel Guru 20000000 100% 20000000 43200000 0.5
Travel Services I 96977898 100% 96977898 1214520000 0.1
Snapdeal
Freecharge 400000000 100% 400000000 20000000 20.0
GoJavas 1200000000 20% 6000000000 2000000000 3.0
Flipkart Myntra 20000000000 100% 20000000000 4416000000 4.5
Table 1
d) Expected market growth: The growth rate for the overall e-commerce sector has been around 34% (5)
since 2009. Individual sector growth stand at 21% for e-retail (6); e-travel market growing at an average
rate of 17% (7). For others, the average growth rate can be taken as per the industrial segmentation. This
would after calculation sum up around 12%.
e) Effect of the deal on level of competition: It will be sector specific since the number of companies
coming up in every sector varies and competition is both direct as well as indirect.
f) Upcoming government policies: GST implementation and construction of the proposed railways and
roadways will help in improving the average rail transport speed to 75kmph from 25kmph currently (8).
The implementation of GST will reduce the overall tax expenditure thus improving upon the profit
margins (9). It is also expected that increased FDI will also improve the e-commerce situation in the
country.
g) Change in consumer behaviour: 95% of the consumers search online before making any purchase. 48%
of the consumers are influenced by Social media in their decision making. 41% of the consumers make
purchase after receiving a discount offer over e-mail and 25% make a purchase after receiving an offer
through sms. Thus, we can assume that with the increasing mobile phone and internet penetration, the
consumer has started valuing comfort at home more over anything else especially since it comes coupled
with good quality and less expensive prices. (7)
10. 10
6) e-RetailSectorAnalysis
Year 2012 2013 2014 Year 2012 2013 2014
Sales 205.01 1,180.07 2,846.13 Sales 100% 100% 100%
Expenses 153.7575 861.4511 2020.7523
Gross
Margin 25% 27% 29%
Gross Margin 51.2525 318.6189 825.3777
Operating
Margin -52% -23% -13%
Operating Expense 158.8025 594.2889 1207.7677 EBIT -54% -24% -14%
Operating Margin -107.55 -275.67 -382.39 PBT -54% -24% -14%
Depreciation 2.38 6.07 17.97 PAT -54% -24% -14%
EBIT -109.93 -281.74 -400.36
Interest Expense 0 0 0
PBT -109.93 -281.74 -400.36
Tax 0 0 0
PAT -109.93 -281.74 -400.36
Table 2 Flipkart- Data Analysis
Fig 3 Flipkart- Data Analysis
The operating margins have been increasing over the time. This can be attributed to the multiple vertical
integrations that Flipkart has undertaken. It can be observed that most of the platforms that Flipkart has acquired
have been 100% acquisitions with the acquired companies allowed to function as a separate division with the
same team but as a part of Flipkart only.
Examples of some such acquisitions for Flipkart include:
100%
25%
-52% -54% -54% -54%
100%
27%
-23% -24% -24% -24%
100%
29%
-13% -14% -14% -14%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
Sales Gross
Margin
Operating
Margin
EBIT PBT PAT
Mar-12
Mar-13
Mar-14
11. 11
1. Flipkart-Mime360: A digital content platform which hosts music streaming. A 100% acquisition done
in part stock and part cash aimed at giving boost to the music segment on the website. Flipkart used the
Mime360 platform to advertise for its music services as well as gained from sales on Mime360.
2. Flipkart-We Read: A social book recommendation website with 3 million readers and 60 million
books. A 100% acquisition again, almost all the consumer base of the website was later directed to
Flipkart.
3. Flipkart-Adiquity: Adiquity provided a mobile advertisement network platform. With 25 billion
advertisement impression in 200 countries, Flipkart has used this platform not only to advertise for its
products on the mobile apps but also to sell its consumer purchase behaviour to sellers online.
4. Flipkart-Appitrate: Appitrate provided a mobile engagement and mobile app testing platform. A 100%
acquisition of the firm helped Flipkart in its app development and testing thus saving on the outsourcing
cost.
As, stated above; due to the lack of availability of the data for most of these firms that Flipkart has acquired, we
have assumed the valuation factor to be less than 1 as per the e-commerce industry trend. The one major deal
with Myntra which stood at a value of INR 2000 Crore had a valuation factor of 4.5 only which was very
conservative and an efficient bargain for Flipkart considering the growing sales of Myntra. (10)
Another important factor that needs to be looked into is the company getting overly optimistic in valuing the
firms they want to buy. The Snapdeal-Freecharge deal with a valuation factor of 20 is one such example. This
has resulted in Snapdeal registering losses which have increased five folds pegged at around 1500 Crore
according to a report submitted by Economic Times (11) With a firm spending around INR 1200 million on
discounts a month; paying 20 times the value of a firm was definitely a wrong decision. Another fact that might
have triggered this over valuation may be that with net sales of INR 2 Crore, Freecharge itself was valued at
about 2 times more. An acquisition however did give a sudden boost to Snapdeal’s valuation from INR 12460
Crore to INR 28000 Crore but the end result is evident in form of the accumulated losses.
The point to be noted here is that the model many of the e-retail companies have started to follow does work
well in the short run but there is a high possibility for it failing in the long run due to high debts which will
eventually lead to degrading investor confidence. (12)
The synergies expected in these cases are mainly operational and financial. The financial part is more of
expected since the consumer loyalty is very low in these segments; dwindling at 34% (13)
12. 12
Thus, such heavy investments when the acquirer is still running in loss are not advisable. It is instead better
that the already owned portfolio is made strong and the requisite investment be made in strengthening the
supply chain and offering new differentiation points to the consumer since variety, low price, quality and one
stop shop have already become the basic needs to be satisfied.
Also, with the pace of growth in this sector, new competitors are coming up by the day, in such a case
acquisitions, no matter how much they are will have no effect on the competition level. With the passage of
the FDI bill, the competition will only stiffen. Hence, achieving operational efficiency should be the major
target of the firms instead of spending heavily on acquisitions.
The other acquisitions made in the Industry include:
1. Myntra- Fitiquette: Myntra acquired San Francisco based Fitiquette. Fitiquette is a technology solution
which is a virtual fitting room. The acquisition was partly cash and partly stock. According to Myntra,
the acquisition will give it one more way to help remain competitive against the likes of Snapdeal and
Flipkart.
2. Myntra- Sher Singh: Online private label retailer Sher Singh was acquired by Myntra in cash and stock
deal. Both had common investors and according to these firms, the deal will leverage already existing
synergies between the brands. Sher Singh will help Myntra in getting private label while Sher Singh
will be able to target broader audience. Co-founder of Sher Singh was appointed as lead of private label
initiative of Myntra. With mergers Myntra has been able to bring key people on board.
3. Snapdeal- Yebhi: Snapdeal acquired Yebhi for an undisclosed sum. However we expect the valuation
to be higher than the average of 4.8 since Yebhi was the market leader in its segment of footwear retail.
4. Snapdeal-Unicommerce: Snapdeal merged with Unicommerce which is an e-commerce management
software and fulfillment solution provider. The acquisition of Unicommerce was expected to help
Snapdeal manage everything from vendors to inventory and from warehouse to shipment and returns
5. Snapdeal- Martmobi: Snapdeal also acquired mobile technology startup MartMobi. This acquisition
was aimed to help the firm strengthen its mobility platform for merchant partners. For Snapdeal, 75% of
orders came from mobile-based devices and similar trend was witnessed on merchant side too. Hence,
The Martmobi team was a great addition as it will help strengthen the platform for sellers
6. Flipkart- V hive
7. Flipkart- Letsbuy
8. Flipkart- Chakpak
9. Zovi- Inkfruit
13. 13
7) e-Travel Sector Analysis
a) Thomas Cook-Sterling Resorts
The total Deal was valued at approximately INR 8.70 Billion (USD 145 Million), involving a cash
consideration of up to INR 5.93 Billion (i.e. aggregate of INR 1.88 Billion under SSA, INR 1.76 Billion
under SPA and INR 2.3 Billion for Open Offer) (USD 98.83 Million) and a share swap for the remaining
amount under the Scheme. TCIL was funded by its immediate promoter, Fairbridge Capital, through the
subscription to Compulsorily Convertible Preference Shares (“CCPS”) worth INR 5 Billion (USD 83.33
Million). The remaining amount required was funded through internal accruals.
Further, funds of up to INR 7.2 Billion (USD 120 Million) were pushed down to TCISIL by subscription to
3, 60, 00,000 equity shares, each of face value INR 10/- of TCISIL by TCIL at INR 200/- per share (ie. at a
premium of INR 190/-). (14)
‘The Spectrum of Leisure Real Estate Products in India’ a report published by the Group RCI-Cushman and
Wakefield Hospitality Report17 in 2009 said that Vacation Ownership (or timeshare) was a nascent concept
in India then and it had a potential to grow at approximately 16% per annum from 2006 to 2015, which will
be facilitated by the supply growth of approximately 12% per annum over the same period. An article
published in 2012, noted that the Vacation Ownership / Timeshare sector witnessed a growth of 18% during
2008-2012 period. (15)
The healthy growth projections quoted in the above mentioned reports seems to have consistently met by the
companies operating in the Vacation Ownership sector. Further, the Vacation Ownership players have been
enthused by the present government’s renewed focus on building the tourism industry in India, and with
economic sentiment on the upswing, the industry is expecting a boost in the growth of vacation ownership
sales. (16)
Sterling has been generating positive cash flows, and it is expected that Sterling’s revenue for the year
ending March 2014 will be of approximately USD 26 Million, with a breakeven free cash flow. Thus, to that
extent, it can be expected that Thomas Cook will not be required to further fund Sterling’s operation and
management cost.
In addition to the developed property in form of existing resorts, Sterling also owns 150 acre of the
undeveloped land with huge development potential and TCIL’s acquisition price (approximately USD140
Million) is excluding the value of the unutilized land.
14. 14
Both the companies operate in the same sector with each of them having a large travel oriented customer
base. Further, industry experts believe that this could also be a move towards vertical integration. TCIL as a
travel services company can start offering the hospitality options to its customers as currently provided by
Sterling on standalone basis, thus helping them to plan their holidays better.
b) MakeMyTrip Deals
This was just one example where vertical integration was the major source behind the deal and hence the
valuation factor stood at 5.4. The MakeMyTrip-Ixigo deal in which the valuation factor stands at 6 is
another such deal. With Ixigo being a Meta search engine which provides leads to the airlines, MakeMyTrip
will be able to push the leads generated through its website by using Ixigo which will project the
MakeMyTrip deals on priority which could have otherwise gone unnoticed.
Thus, Ixigo would act as a marketing tool for MakeMyTrip.
Year 2012 2013 2014 Year 2012 2013 2014
Sales 889.81 1,115.32 1,340.17 Sales 100% 100% 100%
Expenses 533.886 713.8048 911.3156
Gross
Margin 40% 36% 32%
Gross Margin 355.924 401.5152 428.8544
Operating
Margin 2% -7% -5%
Operating Expense 336.964 480.0852 489.3744 EBIT 2% -8% -6%
Operating Margin 18.96 -78.57 -60.52 PBT 2% -8% -6%
Depreciation 4.28 9.12 19.24 PAT 2% -8% -6%
EBIT 14.68 -87.69 -79.76
Interest Expense 0 0 0
PBT 14.68 -87.69 -79.76
Tax 0 0 0
PAT 14.68 -87.69 -79.76
Table 3-MakeMyTrip- Data Analysis
15. 15
Fig 4-MakeMyTrip- Data Analysis
From the financial data available for MakeMyTrip, we can notice that the splurge of deals that took place,
did bring the overall profit margins of MakeMyTrip down but the vertical integration has started showing its
effect in the improved PAT in 2014 over 2013.
c) Yatra Online
Yatra Online had gone for four major acquisitions within a span of 3 years starting from 2011 (17), all the
acquisitions made were loss making companies and the valuations were done at less than 1. However due to
this, Yatra has considerably improved its customer base which might show its effect later. However, nothing
concrete can be sad about it due to lack of the financial data for both Yatra and the companies it has
acquired. (18)
Yatra Online bought Travelocity’s Travelguru in July 2012 to boost its hotel bookings portfolio in
the backdrop of poor margins in the ticketing business. For Yatra, Travelguru was its fourth acquisition in
the past 18 months. In January’12, the company acquired events and entertainment
portal Buzzintown.com to expand its customer base by adding over 3 million registered users of
Buzzintown.com. Previously, Yatra.com acquired ticket consolidator Travel Services International Pvt.
Ltd. In July 2011, Yatra.com acquired hotel Aggregation Company Magic Rooms offering access to a live
inventory of over 3,000 hotels across India. At a time when air capacity is under pressure with airlines being
in trouble, the domestic hotel space is a natural hedge and there is tremendous growth in that space," Dhruv
100%
40%
2% 2% 2% 2%
100%
36%
-7% -8% -8% -8%
100%
32%
-5% -6% -6% -6%
-20%
0%
20%
40%
60%
80%
100%
120%
Sales Gross Margin Operating
Margin
EBIT PBT PAT
Mar-12
Mar-13
Mar-14
16. 16
Shringi, CEO said Expedia India. Expedia India, the Indian arm of US-based online travel company
Expedia Inc, said it was also keen on evaluating opportunities for acquisitions. (19)
The competition in the segment is growing and the market growth is also good, hence we can conclude that
vertical integration in this segment is the right thing to do. Aggregating all the resources at one place helps
the consumers to have the complete travel solution at one place. Whichever company does this first is sure to
have the first mover’s advantage. The only point of concern remains the quality of services offered, which
the acquiring companies will have to take care of as a part of post merger integration.
Other deals that have happened in the travel segment include:
1. MakeMyTrip - Luxury Tours and Travels
2. MakeMyTrip - My Guest House Accommodations
3. MakeMyTrip – EasytoBook
8) Other e-Commerce Deals
a) Mahindra-BabyOye
Year 2012 2013 2014 Year 2012 2013 2014
Sales 110.56 196.31 205.7 Sales 100% 100% 100%
Expenses 96.46 141.34 114.15
Gross
Margin 13% 28% 45%
GrossMargin 14.1 54.97 91.55
Operating
Margin -58% -43% -40%
OperatingExpense 77.96 139.22 173.58 EBIT -69% -52% -49%
OperatingMargin -63.86 -84.25 -82.03 PBT -75% -58% -55%
Depreciation 12.58 17.19 17.97 PAT -72% -58% -54%
EBIT -76.44 -101.44 -100
InterestExpense 6.51 12.68 14
PBT -82.95 -114.12 -114
Tax (Extraordinary
Items) -3.26 -0.36 -1.96
PAT -79.69 -113.76 -112.04
Table 4-Mahindra Retail: Losses and yet and acquisition for diversification
The deal done in Feb 2015 was done to consolidate the BabyOye product line with the Mahindra owned
Mom & Me. At the time of acquisition, BabyOye was already running into losses to the tune of about
17. 17
INR 15.14 Crore. Due to this, the venture capitalists Tiger Global, Accel Partners and Helion Venture
Partners had already shown aversions to invest in it. At such a time, Mahindra Retail which was already
running losses could have readily waited for BabyOye to shut completely over time and hence have the
competition reduced instead of investing in it. The deal value is not yet undisclosed however, all the
payment was made in cash and at one go. How, this will turn up for Mahindra Retail is yet to be seen in
the way its financials turn up. (20)
Fig 5-Mahindra Retail: Losses and yet and acquisition for diversification
a) Yahoo-Bookpad Deal
Year 2012 2013 2014 Year 2012 2013 2014
Sales 237.91 243.31 219.3 Sales 100.0% 100.0% 100.0%
Expenses 183.88 203.49 185.77
Gross
Margin 22.7% 16.4% 15.3%
GrossMargin 54.03 39.82 33.53
Operating
Margin 22.7% 17.0% 15.3%
Operating
Expense 0 -1.48 0 EBIT 0.7% 2.2% 11.9%
Operating
Margin 54.03 41.3 33.53 PBT 0.7% 2.2% 11.9%
Depreciation 52.45 36.06 7.39 PAT 0.5% 1.5% 8.3%
EBIT 1.58 5.24 26.14
Interest
Expense 0 0 0
PBT 1.58 5.24 26.14
Tax 0.474 1.572 7.842
PAT 1.106 3.668 18.298
Table 5-Yahoo-Bookpad Deal
100%
13%
-58%
-69% -75% -72%
100%
28%
-43%
-52% -58% -58%
100%
45%
-40% -49% -55% -54%
-100%
-50%
0%
50%
100%
150%
Sales Gross Margin Operating
Margin
EBIT PBT PAT
Mar-12
Mar-13
Mar-14
18. 18
After Facebook and Google acquired Little Eye Labs and Impermium respectively, Yahoo has bought
Bangalore-based Bookpad, a startup that's barely a year old and founded by three youngsters who passed
out of IIT-Guwahati over the past three years. The precise value of the deal could not be ascertained, but
sources said it's a little under $15 million (Rs 90 crore). Bookpad's enterprise software product,
DocsPad, allows users to view any document (like PDF, Word, Powerpoint), as also edit and annotate it,
within a website or app. It works across devices, and does not require downloading of plug-ins or
desktop software. For Yahoo, a content provider, the technology can potentially be embedded in many
of its services. Currently, Bookpad supports 15 different document formats. The potential is huge
considering that 2.5 billion people browse the internet and 53 billion documents are on the cloud today
and the number is expected to touch 200 billion within the next two years. (21). As can be seen from the
financials, the deal is showing good results for Yahoo.
Fig 6-Yahoo-Bookpad Deal
100.0%
22.7% 22.7%
0.7% 0.7%
0.5%
100.0%
16.4%
17.0% 2.2% 2.2%
1.5%
100.0%
15.3%
15.3% 11.9%
11.9%
8.3%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
Sales Gross Margin Operating
Margin
EBIT PBT PAT
Mar-12
Mar-13
Mar-14
19. 19
9) Conclusion
a) Limitations
a. Most of the companies in e-commerce sector are relatively new and unlisted. Thus, availing the
data of the same was difficult. A more detailed analysis could have been done if the said data
were available
b. Many of the deals in question have taken place within a span of five years hence the deal values
have not been fully reflected in the financials.
b) Due diligence is very critical for e-commerce related deals as majority of the companies are running in
loss. Add to the fact that most of them are unlisted and hence getting accurate information becomes even
difficult. In such a case, former employees and existing customers will play a major role in
understanding the condition of the target company.
c) There are certain parameters which need to be stressed upon while ascertaining the effectiveness of
valuation. These according to our analysis include:
a. Financial of the buying company
b. Financial of the target company
c. Expected Synergies
d. Expected market growth rate
e. Effect of the deal on the level of competition
f. Effect of the Government policies which are upcoming or are in place
g. Change in Consumer Behaviour
d) E-commerce is a business which is running totally on expectations and increasing customer base.
However with the bundling losses, the sustainability of this business model is under question. There is a
possibility that after a time the companies in question will have to resort to the actual pricing model and
then they would lose the only advantage that they have over brick and mortar stores leading to an e-
Commerce bubble burst.
20. 20
Bibliography
1. Ladda, Sandeep.eCommercein India:Accelerating Growth. s.l. : PwCIndia,2015.
2. Dinodia Capital Advisors. E-Commerce: India’snextbig opportunity ora bubble? s.l. : DinodiaCapital Advisors,2013.
3. A.C. Neilsen.CustomerLoyaltyin E-Commerce. 2015.
4. O'Neil,Bryan. Due Diligence. 2014.
5. Price Waterhouse Coopers. eCommercein India. s.l. :PwC,India,2013.
6. Technopak, Accel Partners. e-commercein India. s.l. :PwC,2013.
7. Octane Research. e-TravelMarketing in India. 2015.
8. 5. Frost and Sullivan.. Mega Trendsin Indian Logistic Sectorfor 2015-16. 2015.
9. Cognizant.. India’sGoodsand ServiceTax:the Casefor Distribution NetworkRedesign. s.l. :s.l.: CognizantWhite
Papers,2012, 2012.
10. Dalal, Mihir.livemint. Jabongsalesjump,butstill lag Myntra. 2015.
11. Shrivastava, Aditi.Snapdeal'sexpectedlosstoincrease five fold,peggedtobe Rs1500 crore. EconomicTimes. 2015.
12. Prabhudesai,Arun. FlipkartVsAmazonVsSnapdeal:Revenues&LossesComparison.2014.
13. A.C. Neilsen.ConsumerLoyaltyin OnlineRetail. 2015.
14. NishithDesai Associates. ThomasCook- Sterling Deal. s.l. :
http://www.thomascook.in/tcportal/downloads/ThomasCookIndiaLimitedAnnualReport2013includingnotice.pdf,2014.
15. LiveMint.Vacationownershipseessmallhotels,resortsenteringindus.[Online]
http://www.livemint.com/Companies/vCWawHHAAtcZHThJFTmvIK/Vacation-ownership-sees-small-hotels-resorts-
entering-indus.html.
16. The Financial Express.[Online] http://archive.financialexpress.com/news/time-for-timeshare/1275877/0.
17. vccircle.techcircle.in.[Online] August2011. http://techcircle.vccircle.com/2011/08/01/yatra-acquires-nexus-
backed-magicrooms/.
21. 21
18. Yatr Blogs. Yatra.com. [Online] July2012.http://blog.yatra.com/blogs/2012/07/yatra-com-acquires-100-stake-in-
travelguru-com/.
19. LiveMint.Yatra on an acquisitionspree.[Online] January2012.
20. Snigdha Sengupta,Aditi Shrivastava & Madhav Chanchani. ETBureau. EconomicTimes. [Online] Feb4,2015.
Mahindra Groupcompletes the acquisitionof BabyOye.
21. Phadnis,Sujit John & Shilpa. Yahoobuysout Bangalore startupBookpad. The Times of India Tech. [Online]
TimesNewsNetwork,September22,2014. http://timesofindia.indiatimes.com/tech/tech-news/Yahoo-buys-out-
Bangalore-startup-Bookpad/articleshow/43119026.cms.