OCTOBER 20259developing startups, including Covascis, Ecorithim, and Videonetics and offering them exposure to its extensive retail and digital ecosystem. While Flipkart has created a platform called Shopsy, which enables micro-entrpreneurs to start their own online business, which is the future of collaborative growth. Such strategic initiatives are reshaping the image of Indian startups to make the traditional competition strategic allies and role models of the new generation of e-Commerce brands. Through an effort to combine investment with practical operational direction, these retail powerhouses are creating a more cohesive, robust, and future-proofed e-Commerce ecosystem.Let's discuss more on this topic of how retail giants are becoming silent co-founders of e-commerce startups.Funding MomentumThe venture capital (VC) environment in India has shown a sharp improvement, and the investment amount has hit up to $13.7 billion during the fiscal year 2024- 25. It is worth noting that much of this capital was raised by consumer technology startups, which received $5.4 billion. This growth has been led by quick commerce and direct-to-consumer (D2C) models as consumers have shifted behaviour to faster delivery and customised experiences.This has been further enhanced by policy reforms. Angel taxation reduction, long-term capital gains (LTCG) tax reduction and simplified Foreign Venture Capital Investor (FVCI) registration mechanisms have opened up 10.4 billion in 95 funds. Such developments have given more confidence to both investors and entrepreneurs and this has created a more favorable climate to startup businesses.Operational AdvantagesStartups have a great advantage because the operational support offered by these retail giants is very important although funding is essential. Go-to-market strategies based on existing logistics systems, omnichannel retail outlets, and advanced levels of personalization combined with AI can make a startup go to the market up to 50 percent faster. These resources also have the ability to lower the operations costs by 25-30 percent, which allows startups to grow efficiently and effectively.Indicatively, Jumbotail, a Bengaluru-based B2B marketplace of food and grocery has used this kind of support to remake retail supply chains using tech-led innovation. Jumbotail, which has just received a recent 1,000 crore ($120 million) funding round, is not just scaling at a very fast rate, but also enabling smaller businesses to fight and thrive in this new-age economy.Hot Investment SectorsThe focus areas for investment are evolving, with several sectors gaining prominence:· Quick Commerce: Platforms offering rapid delivery services are attracting significant attention.· Social Commerce: Leveraging social media platforms to drive sales is becoming increasingly popular.· D2C Personalization: Brands focusing on personalized customer experiences are on the rise.· Sustainability: Startups emphasizing eco-friendly practices, such as eco-packaging, are gaining traction.· Cross-Border: e-Commerce: Platforms facilitating international trade are expanding their reach.· Deep Tech: Innovations in artificial intelligence, machine learning, and other advanced technologies are at the forefront.These sectors align with the strategic interests of retail giants, who are keen on integrating innovative solutions into their operations."Investors are rooting for an approach that is more structured, institutionalised and professionally executed. Earlier, investors would give much more leeway to the founders for the first one year, which is no longer the case", says Ankur Pahwa, Managing Partner, PeerCapitalNotable September 2025 DealsSeveral significant investments and collaborations have taken place recently:· Flipkart Ventures: Launched the Leap Ahead 4.0 program, offering equity investments of up to $500,000 to early-stage startups, along with mentorship from Flipkart leaders and industry experts.· Reliance: Integrated Jumbotail's logistics capabilities, enhancing its supply chain efficiency and reach.· US-India Alliance: Invested $300 million in AI logistics startups, aiming to revolutionize supply chain operations.
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