E-comm investors shifting gears to profitable growth: Report

The report that was titled as 'eCommerce in India - A Game Changer for the Economy' also said that focus of investors going forward seems to have shifted to profitable growth to achieve stabilisation of the economic model.
eCommerce Investment

In a recent report shared by CII- Deloitte, it said that after seeing a significant growth in eCommerce market over the past 4 years, investors have now shifted their focus to profitable growth to achieve stability.

eCommerce B2C segment has grown significantly, leading to creation of many 'unicorns', said the report.

The report that was titled as ‘eCommerce in India – A Game Changer for the Economy’ also said that focus of investors going forward seems to have shifted to profitable growth to achieve stabilisation of the economic model.

The primacy on profitable growth seems to be leading to collaborations and partnerships across the value chain with the aim of optimising costs, it added further.

As the e-commerce B2B segment is showing signs of rapid digital adoption, this is likely to feed the significant rise of MSMEs and entrepreneurs from the Indian hinterland.

The trend has further pushed many leading online retailers to cut down on their burn rates (upto around 50 per cent) for profitability and break-evens.

The report also highlighted the trends on aggressive drive that comes at a point when capital is becoming scarce for top venture-backed online retail companies. There is also a reduction in dependence on discounts as a growth strategy.

The e-commerce industry is expected to form the biggest chunk of the Indian Internet market with a value of approximately $100 billion by 2020. According to the document paper, the e-commerce growth has been brought about by increasing Internet and smartphone penetration in not just metros, but in tier two and three cities.

Mobile devices are further expected to drive sales through online platforms over the next 5 years, it said.

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