E-Commerce Firms Likely To Overtake Traditional Sectors

BANGALORE:  India is facing a lot of investment in the traditional sectors like real estate, financial services and infrastructure. According to EY, investors have poured $8.5 billion in 381 deals in the past 10 months and to the surprise, e-commerce sector alone accounts for 35 percent($2.96 billion) of it.

When it comes to e-Commerce in India, there are 3 big names that take over the business, Flipkart, Snapdeal, and Ola cabs approximately covered the money in 55 deals. After the e-Com sector, Real Estate has collected $1.2 billion from private equity investors.

According to Sanjeev Krishan of PricewaterhouseCoopers, “E-commerce has seen more PE interest this year than any other sector, and not only from venture funds, but also from sovereign funds and some traditional growth private equity funds, as they see significant opportunity for e-commerce sector in India, particularly relative to the growth experienced in markets like China,” reports Live Mint.

Flipkart alone has raised $1.2 billion from GIC, Naspers, DST Global, Iconiq and Capital Tiger Global which is also the most active investor during this year. On the other hand, Snapdeal raised $884 million in 3 different rounds of funding from Tybourne Capital Management, Temasek Holdings, Premji Invest including Ratan Tata which totals to a gross of $1.7 billion in 9 rounds of funding, since 2009.

Ola has raised $252 million from SoftBank, Tiger Global, Steadview Capital, Matrix India, and Sequoia Capital. Since 2013, it has concluded four rounds of fundraising.

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