BANGALORE: The whole startup and ecommerce industry is so successful at the moment that money is raining on this platform in billions. India has a huge ecommerce, online retail business that is booming. If we look at the amount of investment opportunity there is with the Indian e-commerce business, it is huge. The same is true of other countries and the state of their startup ventures.

When there is a comparison among the startups from various countries it is sad to say that the Indian startup industries are lacking in terms of value and investment worth. There are more preferences given to Startups from Israel and America. Especially those that are based in Silicon Valley, they have the best source of investment attractions and opportunity for growth.

In a report by Gartner, the ecommerce business is sure to cross the $6 billion mark which is huge and many foreign companies will surely invest. But the woes of Indian startups are there valuation worth is less. This is the view of Rahul Khanna, founder of Trifecta Capital Partners, on valuation of Indian Startups, "Foreign investors don't want to miss the bus like they did in China about 4-5 years ago, when valuations were investible enough. India is that juncture now."

The catch though is that ecommerce companies will start seeing a shrink in their investments as they start driving towards profits. The matter of area of operation will highly determine the value of companies is what Aswath Damodaran, who is a teacher of corporate finance and equity valuation at the Stern School of Business in New York says. This is why India lacks and is facing drought from money investments because of the reach that is very minimal. The Companies are slowly expanding but it is at snail pace. They need to give investors the confidence about their reach of operations.

"Valuation is a function of supply and demand of capital. When there are deals and not enough capital, the investor wins. And when there is more money and fewer deals, entrepreneur wins," said iSpirt's Sharma. This is something that the Indian e-commerce companies need to study and work towards and build on this platform.

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