Indian Ecommerce still looking to Ground its Feet, But Investors Upbeat


india ecommerce Indian Ecommerce still looking to Ground its Feet, But Investors UpbeatThe $2 billion Indian ecommerce industry is still struggling to be profitable, but the investors are quite upbeat about its future and continues to invest more money, eyeing long term growth.

Within the first four months in 2014, Investors (PE & VC) have already put in $141 million, which is almost half of last year’s investment of $295 million, according to research firm Venture Intelligence.

The $150 million investment received by Flipkart from various investors formed the lion-share of last year investments in the ecommerce industry.

$50 million by Kalaari capital Nexus Ventures, Samaa Capital and others in marketplace ecommerce firm Snapdeal, $14 million by Sequoia Capital India and Intel Capital in Health are some the major investments in 2013.

“The PE investment in brick-and-mortar retail has failed. Brands are also realizing that e-commerce is a better way to penetrate into the tier-II and tier-III cities as building the physical infrastructure is never going to be profitable,” says Arun Natarajan, CEO, Venture Intelligence.

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