​​​
  1. Good news! $9 bn inflows into Indian e-commerce ventures in 2017; SoftBank leads charge

Good news! $9 bn inflows into Indian e-commerce ventures in 2017; SoftBank leads charge

A chunky $9 billion has flowed into e-commerce ventures in 2017 in a sign Indian e-retailers are living up to their promise.

By: | Published: December 5, 2017 6:40 AM
SoftBank, indian e retailers, e commerce, investments A chunky billion has flowed into e-commerce ventures in 2017 in a sign Indian e-retailers are living up to their promise. (Reuters)

A chunky $9 billion has flowed into e-commerce ventures in 2017 in a sign Indian e-retailers are living up to their promise. After a somewhat dul2016, which attracted $4.5 billion in investments, private equity players and venture capitalists firms have upped their exposure to e-tailers. To be sure, a big amount of the $9 billion — $4 billion — has been committed by one big investor, SoftBank. The Japanese investor has bought stakes in Flipkart, OYO Rooms, Ola and Paytm. Data from Tracxn Technologies show the Masayoshi Son-led conglomerate has bet close to $6 billion in the last three years. China’s Alibaba Group too picked up a stake in Paytm Mall and put in a good $280 million into e-grocer BigBasket. In October, taxi-hailing service Ola closed out a funding of $1.5 billion from SoftBank, Tencent Holdings, RNT Capital and Tekne Capital Management.

SoftBank’s investment of about $2.5 billion in Flipkart, via its $100-billion Vision Fund, has made it the largest shareholder in the Bengaluru-based e-retailer, displacing Tiger Global, which made a partial exit following the deal. In May, food-tech company Foodpanda’s parent DeliveryHero raised $431.45 million from South African internet investor Naspers. Delivery Hero said at the time it would fund a part of its India operations. Meanwhile, Amazon continues to infuse capital into its India arm from time to time and has invested $2.6 billion in the current financial year, according to registrar of companies filings. The investments are part of Amazon’s commitment to invest $5 billion in the India operations. The company’s revenue at it marketplace arm more than doubled in the year to March. Amazon Seller Services’ revenue rose 105% in the year according to an Amazon India spokesperson quoted in the Mint newspaper. Regulatory filings revealed a rise of 41%.

Rahul Chowdhri, partner and co-founder, Stellaris Venture Partners, says managements are keeping a watch on margins, the cost of customer acquisitions and the monthly cash burn. “While some good businesses continue to get financial support, the rest must build a strong business so investors are convinced,” Chowdhri said.Rahul Chowdhri, partner and co-founder, Stellaris Venture Partners, says managements are keeping a watch on margins, the cost of customer acquisitions and the monthly cash burn. “While some good businesses continue to get financial support, the rest must build a strong business so investors are convinced,” Chowdhri said.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

  1. No Comments.

Go to Top