A big amount of the $9 billion — $4 billion — has been committed by SoftBank that has bought stakes in Flipkart, OYO Rooms, Ola and Paytm.
Investment worth $9 billion has flowed into Indian e-commerce ventures in 2017, indicating that these ventures are living up to their promise.
A big amount of the $9 billion — $4 billion — has been committed by SoftBank that has bought stakes in Flipkart, OYO Rooms, Ola and Paytm. Data from Tracxn Technologies show that SoftBank has bet close to $6 billion in the last three years. China’s Alibaba Group bought a stake in Paytm Mall and invested $280 million in 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 Flipkart. 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 fiscal, according to registrar of companies filings. The investments are part of Amazon’s commitment to invest $5 billion in its 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 Mint. 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.
Source: Financial Express