India E-commerce Market 2019 - Benori Knowledge Solutions
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
India E-commerce
Market 2019
PREMIUM
2020 © Benori Knowledge. All Rights Reserved 1
Contents
▪ Executive Summary ▪ Competitive Analysis
▪ Industry Definition and Coverage ▪ Player Landscape
▪ Industry Overview ▪ Player Profiles
▪ Market Evolution ▪ Flipkart Online Services Pvt Ltd
▪ Business Model ▪ Amazon Seller Services Pvt. Ltd
▪ Industry Size, Performance and Growth Outlook ▪ One97 Communications Limited
▪ Industry Drivers and Key Challenges ▪ Snapdeal Private Limited
▪ Industry Drivers ▪ Bundl Technologies Pvt Ltd
▪ Key Challenges
▪ Impact of Disruptive Technologies
▪ Developments and Trends
▪ M&As, Partnerships & Alliances
▪ PE Deals
▪ Market Trends
2020 © Benori Knowledge. All Rights Reserved
Executive Summary
2020 © Benori Knowledge. All Rights ReservedExecutive Summary
India E-commerce Market, US$ B
The Indian e-commerce industry is growing exponentially due to increasing
internet subscribers, rising digital transactions (UPI transactions, mobile wallet 106.0
and net banking transactions) and growing government support.
43.0 53.0
In 2018, the e-commerce market in India was US$ 43 B and is expected to be a
US$ 53 B industry in 2019. Further, the market is expected to cross US$ 100 B
by 2022 at a CAGR of 26% during 2019-2022. Growing per capita income coupled 2018 2019-E 2022-F
with rising internet penetration in tier-II and tier-III cities in India are also
driving the growth of the industry.
India Internet Subscribers, Million
Internet subscribers in India are expected to increase from 604.2 million (in 904.0
2018) to 904 million subscribers (in 2022). In addition, India is adding 604.2 679.1
approximately 10 million daily active internet subscribers each month, which is
the highest rate of internet penetration in the globe.
Further, online shoppers in India are expected to reach 220 million by 2025 as 2018 2019-E 2022-F
compared to 117 million in 2018.
Innovation in payments industry due to emerging technologies such as AI, UPI Transactions, Million
blockchain, IoT and real-time payment, along with growing government focus
towards building a cashless economy (leveraging improved telecom and 1912.7
payment infrastructure) is driving the adoption of digital instruments by 1218.8
merchants and proliferation of UPI. 524.9
Jan-18 Jan-19 Jan-20
Sources: eMarketer, NASSCOM, TRAI, NPCI, Benori
2020 © Benori Knowledge. All Rights Reserved 4Executive Summary
India E-commerce Industry Goes Rural Technological Advancement
With growing internet penetration in rural areas across the country, the number of online To gain competitive advantage, major e-commerce
shoppers is also increasing rapidly. E-commerce players witnessed strong growth in their players are either acquiring or partnering with tech
consumer base belonging to tier-II and tier-III cities due to slow deployment of physical organised firms to enhance consumer experience and
retail, availability of better discount and offers, wider product range and multiple payment strengthen their portfolio.
options such as ‘no cost EMI’.
E-commerce giants such as Flipkart, Myntra, Oyo,
In 2018, the total number of online shoppers stood at 117 million, of which 61 million were from Snapdeal, Amazon are investing heavily on disruptive
tier-I cities while, 56 million shoppers belonged to tier-II and tier-III cities. technologies like artificial Intelligence, IoT, AR/VR,
automation and blockchain to enhance consumer
Major e-commerce players such as Amazon recorded that more than 80% of its customers, during shopping experience and provide recommendations
festive season sale are from tier-II and tier-III cities. Similarly, with growing demand, Swiggy based on their search pattern.
expanded its presence to 16 new tier-II and tier-III cities to capture the consumer demand, as
the company noticed increase in their app downloads in these cities.
Technology Focused Acquisitions
Focus: Focus: Focus:
Conversational shopping experience AI and IoT based tech infrastructure for To develop wearables for its in-house
Strengthen product selection, managing hotels and other assets brands and enhance customer engagement
recommendation and pricing capabilities
Sources: Press Releases, Benori
2020 © Benori Knowledge. All Rights Reserved 5Industry Definition, Coverage and Research Methodology
2020 © Benori Knowledge. All Rights ReservedIndustry Definition, Coverage and Research Methodology
The e-commerce market comprises sale of physical goods or services via digital platforms to end users (B2C). Consumers are required to purchase goods or
services via connected devices such as smartphones, tablets, laptops or desktops, among several other digital mediums. On the other hand, sellers must have a
secure website (or a mobile app) well-equipped to sell their products online.
As per United Nations Industrial Development Organization (UNIDO), “e-commerce means buying and selling of goods and services including products over digital
and electronic networks”.
Market Scope Limitation
Scope of the study is limited to: B2B markets (e.g. Alibaba)
Sale of physical goods or services via a digital channel to a Resale of used goods (re-commerce)
private end user (B2C)
Sales between customer to customer (C2C) (e.g. OLX)
Purchases via desktop computer (including notebooks) and
purchases via mobile devices (e.g. smartphones)
Research Methodology: All the quantitative and qualitative information given in the study is based on secondary research. Benori has referred to several studies
published by different associations and government press releases and annual reports. For forecasting, Benori has used multiple forecasting techniques to
forecast market numbers and has also considered various factors influencing the market growth.
Note: All the numbers given in the study are rounded off to one digit after decimal.
2020 © Benori Knowledge. All Rights Reserved 7Industry Overview
• Market Evolution
• Business Model
• Industry Size, Performance and Growth Outlook
2020 © Benori Knowledge. All Rights ReservedMarket Evolution
1999- 2007- 2011- 2014- What
2006 2010 2013 2018 Next
India Goes Online E-commerce Penetration Amazon in India Online Grocery The Future
Rediff added online In 2007, Bookmyshow and In 2012, Jabong entered In 2014, Dunzo and Swiggy With growing funding in
shopping to its portal. Flipkart entered India’s e- with fashion and lifestyle started their operations in India’s e-commerce industry
Later, Indiatimes shopping commerce market. Customised e-commerce portal. It India. The next year (2015) coupled with rising
and Baazee.com entered facilities such as ‘choose your became the most visited witnessed several start-ups government support, the
India’s e-commerce market. preferred seat’ and deep website in 2013. entering the online food e-commerce industry in
IRCTC introduced their e- discount offers attracted In 2013, Amazon launched ordering e-commerce market India is expected to evolve
commerce platform to book customers that majorly its website and app in in India, with Zomato and at the fastest pace globally.
tickets in one go with easy belonged to tier-I cities, to go India and started its Food Panda being the major Companies, are also using
online payment options. online. operations by selling ones amongst them. social media platform for
Later in 2005, MakeMyTrip In 2009, Myntra entered the electronic products online. In 2017, Ola, a transportation lead generation, as the
started its operation with market and started offering Later, the company also network company, acquired number of social media
online flight tickets and personalised products online. entered into fashion FoodPanda to enter the online users is also growing
hotel and holiday package The company extended its apparel, beauty, home food delivery business in exponentially.
bookings. Yatra also started product line to retail fashion essentials and healthcare India. Similarly, Uber
its operation in 2006. and lifestyle category. Mydala categories. launched ‘UberEats’, an
and Snapdeal started in 2009 online food delivery platform
and 2010 respectively with under marketplace model.
their daily deal platforms. In In 2018, Amazon started its
2011, Snapdeal started using food retail business in India.
marketplace model for their e-
commerce operations.
The security, convenience and user experience has enhanced since the inception of Rediff.com. The industry continues to grow with
technology advancement and thousands of businesses entering the online market each year.
2020 © Benori Knowledge. All Rights Reserved 9Business Model
E-commerce market in India primarily operates through three business models, namely marketplace, inventory–based and hybrid model. Most of the major e-
commerce players at present, are operating through the marketplace model, while companies such as ShoppersStop and Ikea are operating via inventory-based
model. Although, Bigbasket initially operated through inventory model, the company switched to hybrid business model due to the rise in competition and
consumer base.
E-Tailing Business Model
Marketplace Model Inventory Based Model Hybrid Model
A marketplace is a platform
Definition
In inventory-based model, goods and Hybrid model is a combination of
provided by a third party, enabling
services are owned by e-commerce both marketplace and inventory-
buyers and sellers to conduct
entity and are sold to the consumers based business model. The entities
commerce. The company only acts
directly. partially own and partially source
as a mediator and does not own the
their products from third party
products/services provided.
sellers.
Example
In the Indian e-commerce industry, 100% FDI under automatic route is permitted for platforms operating via marketplace business model.
However, FDI in inventory-based model of e-commerce is strictly prohibited.
2020 © Benori Knowledge. All Rights Reserved 10Industry Size, Performance and Growth Outlook
Global vs Indian e-commerce market
Global E-commerce Market Scenario India E-commerce Market Scenario
Globally, e-commerce market witnessed a strong growth in 2018 and is Retail is India’s largest industry that contributes over 10% of the country’s
further expected to grow exponentially during the forecast period. In 2018, GDP and 8% of the total employment. In 2019, retail sector of the country
e-commerce market contributed over 14% in the total retail market and is is expected to cross US$ 1.0 T and is further expected to grow at 9.6%
expected to contribute over 22% by 2022. CAGR during 2019-2022.
Mobile phones, attributing to over 60% market share continued to be the India is one of the fastest growing e-commerce market globally and is
dominant purchase channel in 2018. The segment contributed around US$ expected to grow at 26% CAGR during 2019-2022. By 2022, e-commerce
1.8 T to the global e-commerce market in the same year. market is expected to cross US$ 106 B (as compared to US$ 43 B in 2018)
In 2018, Asia-Pacific was the largest revenue contributor to the global e- on account of growing government focus towards improving digital
commerce market and is further expected to be the leading contributor led infrastructure via multiple initiatives such as Digital India.
by China, Japan, South Korea and India during the forecast period. Online grocery and pharmacy are emerging as new areas in focus in the
e-commerce arena in India due to ticket size and repeat purchase.
Global Retail & E-commerce Market, 2018-2022 (US$ T) India Retail & E-commerce Market, 2018-2022 (US$ B)
28.5
20.3 21.0 1,400.0
CAGR 950.0 1,062.5
CAGR
5.7 2019-22 2019-22
2.9 3.5
Retail 6.0% 43.0 53.0 106.0 9.6%
Retail
E-Commerce 17.3%
2018 2019-E 2022-F E-Commerce 26.0%
2018 2019-E 2022-F
Sources: eMarketer, NASSCOM, Benori Note: E-Expected; F-Forecast Sources: NASSCOM, Invest India, FICCI, Benori Note: E-Expected; F-Forecast
By 2021, e-commerce is expected to become one of the largest retail channels globally. E-commerce players continued acquisitions and
investments in disruptive technologies such as Artificial Intelligence, IoT and analytics solutions.
2020 © Benori Knowledge. All Rights Reserved 11Industry Size, Performance and Growth Outlook
Indian e-commerce market outlook
eTail Market, By Type (US$ B) E-commerce Market, By Type (US$ B) eTravel Market, By Type (US$ B)
1.7
**Online grocery and ePharma 12.8 10.0 ***Online cab booking and others 2.5
1.2 4.1
1.1 5.8
16.9 4.0 34.0 1.1 2.7 1.5
5.0 3.0 2.3 3.0 7.1
4.0 2.4 4.9
4.4
5.0 7.0 32.4 19.0 22.0 62.0 7.8 8.7 12.8
12.0 15.0 21.0 27.0
2018 2019-E 2022-F 2018 2019-E 2022-F 2018 2019-E 2022-F
Domestic Air Rail International Air
Electronics Fashion Others** eTail eTravel Others* Hotel Others*** Bus
Source: eMarketer, NASSCOM, Benori Note: E-Expected; F-Forecast *Financial Services, Consumer Services And Digital Content
Key Drivers of Growth Key Takeaways
Rising smartphone and Enhanced logistics Online shoppers from tier-I cities will continue to dominate the overall online
internet penetration infrastructure with focus consumer base in India. However, online shoppers in tier-II and tier-III cities
coupled with declining on last-mile delivery are also rising exponentially with growing awareness.
data costs In 2018, the total number of online shoppers stood at 117 million, in which
61 million were from tier-I cities while, 56 million shoppers belonged to
Proliferation of digital Increasing number of tier-II and tier-III cities.
options such as m-wallet, online shoppers from tier- Online grocery and e-pharmacy have emerged as the must-capture segment
Unified Payment Interface II and tier-III cities for e-commerce players due to ticket size and high repeat purchase rate.
(UPI) and mobile banking
Flow of credit to consumers, sellers and micro enterprises and growing focus towards the enhancement of payment solutions and gaining
trust of the consumers are driving the e-commerce market in India.
2020 © Benori Knowledge. All Rights Reserved 12Industry Size, Performance and Growth Outlook
Emerging e-commerce segments
Online Grocery - The fastest growing eTail segment E-Pharma
Growing internet penetration, rising smartphone ownership, growing
Grocery contributed to around 60% of India’s retail market in 2018. With
awareness related to online shopping and high discount offers are driving
growing online penetration and changing lifestyles, online grocery
the e-pharma market across the country.
became the must-capture segment for e-commerce players owing to its
In 2018, the e-pharma market was around US$ 350 M (approximately 2% of
larger ticket size and repeated frequent purchase rate.
the total pharma retail market in India), and is further expected to grow at
According to NASSCOM, online grocery market in India stood at US$ 1 B in a CAGR of over 40% during 2019-2022.
2017 and is expected to reach US$ 5 B by 2020. On an average ~80% online 1MG, NetMeds, Medlife, PharmEasy, LifCare and Practo are the leading
orders are worth about US$ 20 B. e-pharma companies that handle around 25,000-30,000 orders per day.
Alongside already established players such as Bigbasket and Grofers; Major Indian E-Pharma Companies
leading e-commerce players such as Flipkart and Amazon also entered the Consultation Diagnostics Pharmaceuticals Hospitals
online grocery market under their ‘Supermart’ and ‘Prime Now’ services,
respectively. Moreover, the market is expected to be driven by technological
advancements and faster delivery services in the coming years.
With growing online grocery market, the number of startup companies,
majorly in tier-II and tier-III cities are also growing. Few of the examples
are: Flipfresh (Hubballi), ShopitDaily (Indore), PinckCityKirana (Jaipur),
GharBaitheBazar (Lucknow) and Kada (Vishakhapatnam), MeraKisan
(Pune), Ananda Grocery (Coimbatore).
From little to no existence in 2010, startups in online grocery market have
risen in the recent years, accounting for 40% of the total e-commerce
funding in India. Until October 2019, online grocery startup companies
received total funding amounted to US$ 665.7 M.
Source: News Articles, Benori
With growing competition, companies are investing heavily on disruptive technologies to gain advantage. For instance, 1MG is working on
artificial intelligence to create ‘doctor assistant’ that would make a doctor more productive.
2020 © Benori Knowledge. All Rights Reserved 13Industry Drivers and Key Challenges
• Industry Drivers
• Key Challenges
2020 © Benori Knowledge. All Rights ReservedIndustry Drivers
Discounts, Offers and Depth
Internet Subscribers Mobile Commerce
in Product Line
Attractive discounts and offers and the ‘no As awareness around the internet is With growing usage of mobile internet across
cost EMI’ option offered by multiple e- increasing, more and more people (sellers, the country, online retailers are expanding
commerce players are attracting consumers to buyers and investors) are being drawn towards their footprint in tier-II and tier-III cities. By
purchase required product/services via online e-commerce. 2018, tier-II cities in India had over 50 million
platforms. India, a country with the second largest online shoppers. Additionally, with rise in
Online shopping channels are also enabling internet users after China, had over 604 investments in logistics and warehouses,
their users to select from multiple options a million internet users in 2018. The country is online retailers are now delivering to 12,500-
single platform. In addition, they also provide further expected to cross 904 million internet 19,200 pin codes out of around 100,000 pin
the facility to order any product from any users by 2022. codes in the country.
region of the country or the world. Increase in multi-lingual content and customer By 2020, smartphone penetration is expected
With growing competition, companies are support across the internet ecosystem. As 75% to reach 50% in India.
integrating artificial Intelligence for offering Indians speak at least one of the numerous Also, according to Ericsson, India’s data usage
personalised solutions to customers based on regional languages in the country, e-commerce per smartphone reached 9.8 GB/month, the
their search results over the app/website. players have started focusing on targeting tier- highest in the world, and is further expected
II, tier-III and other untapped markets. to be double to 18 GB by 2024.
The number of mobile internet users is
expected to reach 37.4% of the total
population by 2021.
Improved logistics infrastructure with a focus on last-mile delivery along with increasing attention towards strengthening the technology
infrastructure is boosting the e-commerce industry in India.
2020 © Benori Knowledge. All Rights Reserved 15Industry Drivers
Growing Investment Seamless Transactions Government Initiatives
Rising investments in the e-commerce industry Convenient payment models coupled with The Government of India is supporting growth
in India are supporting the sector’s growth. For attractive discount offers by e-commerce in the e-commerce industry with multiple
instance: players have compelled the usage of initiatives such as ‘Digital India’, ‘Make In
In December 2019, Licious, a Bangalore- credit/debit cards, m-wallets and UPI India’ and ‘Start-Up India’.
based e-commerce platform selling transactions. The government has allocated US$ 1500 M for
fresh meat and seafood, raised funding In December 2018, India had 958.2 million the expansion of telecom infrastructure, which
of US$ 30 M by Singapore-based Vertex debit card and 44.2 million active credit card is directly linked to digital India initiatives.
Growth Fund to expand its footprint in users. In February 2019, the Government of India
India. Currently the company is On the other hand, transactions through released the draft National e-commerce
processing more than 17,000 orders mobile wallets increased by 3.4% month-on- policy. Further, in June 2019, the government
every day. month to 347.1 million transactions in July further announced to introduce national e-
In October 2019, Amazon Inc. infused 2019 as compared to 334.7 million in June commerce policy within next 12 months.
US$ 631 M into its Indian subsidiaries, 2019. Under “Internet Saathi” project, Google and
including Amazon Seller Services (~US$ In addition, number of transactions though UPI Tata Trust have collaborated to boost internet
480 M), Amazon Pay (~US$ 127 M) and increased exponentially from 524.9 million in penetration among rural women in India. Till
Amazon Retail (~US$ 24 M). January 2018 to 1,218.8 million in January July 2019, the project has benefited over 26
2019. million women across 2.6 lakh villages and
20 states in India.
Due to the growing e-commerce market, companies such as P&G, Ikea and Amway are exploring the option of entering the online market
for their next phase of growth.
2020 © Benori Knowledge. All Rights Reserved 16Key Challenges
Cash on Delivery (COD) Mode
Data Security Touch & Feel Constraint
and High Logistics Cost
In order to reduce the concerns around online Data security is a major concern for all the Majority of buyers in India prefer to touch and
transaction security, major e-commerce players operating in the e-commerce industry feel the product before buying to be assured
players started providing COD facility to their as they deal with huge volumes of customer of its looks and quality, which they can not
customers. While placing an order, shoppers information which is shared with external validate over an online platform until they
can skip paying online (through debit/credit parties such as sellers and logistics providers. buy the product and it arrives at their
card or net banking) and choose to pay in These external players can misuse the doorstep. This is a major challenge for e-
cash when the product arrives at their consumer data provided. commerce players who sell products such as
doorstep. Although cases of customers apparels, jewellery, cosmetics and
refusing to pay at the time of delivery accessories. However, the above constraints
resulted in heavy losses that incurred in do not affect online booking and ticketing
product transit and sales. businesses in India.
Receiving payment in cash (via COD) makes
the process laborious, risky and more
expensive for companies as their capital
requirements and collections increased.
Higher return ratio for goods sold online also
poses an expensive challenge for e-commerce
companies. The return percentage of COD
orders is also high.
Lack of awareness majorly in tier-III cities, inadequate plastic money holder and the concerns around online transactions are the major
challenges for the e-commerce industry in India.
2020 © Benori Knowledge. All Rights Reserved 17Impact of Disruptive Technologies
2020 © Benori Knowledge. All Rights ReservedImpact of Disruptive Technologies (1/2)
With growing competition in the e-commerce industry in India, giants in the sector are focusing on integrating disruptive technologies such as Artificial
Intelligence (AI) (which also includes machine learning, deep learning and natural language processing), augmented reality and virtual reality, Internet of
Things (IoT), industrial automation and vernacular technology. The integration of these technologies is aimed at gaining competitive advantage in
acquiring new customers, understanding their purchasing pattern and reducing the operational cost.
In addition, companies are investing on drone-based delivery services, blockchain and edge computing, that would help in mitigating overall logistics cost
and security concerns among the consumers.
Artificial Intelligence
Current Use Case: Future Use Case: Example:
AI is an essential tool for e-commerce players to Flipkart is using an AI-based solution to
differentiate themselves in the marketplace. understand and analyse upsell, buying
With growing online shoppers and rising data behaviour, buying capacity and preferences;
traffic, companies are integrating AI (including give recommendations; and lower the return rate
machine learning, deep learning and natural Digital Payments Smart Labels of products. Flipkart is also using conversational
language processing) for multiple use cases such chatbots to solve the queries of their customers
as product recommendation and planning in real time. In addition, Flipkart has also done
based on search patterns, customer loyalty, some technology-focused acquisitions such as
customer retention, virtual assistance, price Liv.ai and Upstream Commerce to accelerate and
optimisation and visual search. enhance shopping experience of its customers.
Mixed Reality Beacons
The acquisition of Liv.ai is focused on providing
These use cases will play a vital role for e- speech recognition ‘voice-based’ services, while
commerce players in optimising their operational acquisition of Upstream is focused on building
advanced and intelligent solutions for
costs and enhancing their customer experience
strengthening their product selection and price
with growing online shoppers.
optimisation process.
E-commerce players rely on AI to predict traffic, detect and mitigate bots and consumption traffic during festive season sale. AI
chatbots/virtual agents are expected to replace around 85% of customer interactions by 2020.
2020 © Benori Knowledge. All Rights Reserved 19Impact of Disruptive Technologies (2/2)
Augmented & Virtual Reality (AR/VR) Robotic Automation
AR/VR provides a new way to experience products in a digital environment. Robotic automation helps e-commerce players automate and eliminate tedious
With changing lifestyle and growing online spends, e-commerce players are tasks, optimise processes and reduce man hour work. Supply chain
also integrating AR/VR technology within their platforms to enhance management, inventory management, product classification and delivery
consumer experience. Moreover, AR also provides customisation facilities to management are the major use cases for Robotic Automation.
online consumers based on their style, size, colour and other preferences.
Example: To scale up processing of customer shipments, Flipkart introduced
Example: LensKart, an eyewear e-commerce platform leverages this robot-based sortation technology, Automated Guided Vehicles (AGVs) in its
immersive technology to enable its users to virtually try out frames through Bengaluru-based delivery hub. The set-up involves over 100 self-guided bots
their 3D feature. Byju’s, an online ed-tech company is another example that that automatically sort packages to the right customer’s pin-code by
uses VR-based technology to provide an experimental learning experience to identifying encoded information on each package.
their customers.
Internet of Things (IoT) Other Disruptive Technologies
Growing customer data traffic along with rising focus towards providing real- Blockchain, drone-based delivery services, edge computing and vernacular
time solutions to the customer is driving companies to enhance their IoT technology are the other disruptive technologies where e-commerce players
infrastructure. Real-time surveillance, product tracking and optimisation are investing heavily.
are the major use cases of IoT. On the other hand, with increasing number Example: Zomato, an online food delivery company has acquired TechEagle, a
of edge devices, edge computing is becoming a prominent use case of IoT drone startup to deliver food in India. Similarly, Amazon has also invested in
for e-commerce players. drone technology that can be used for delivering goods in India.
Example: Oyo has acquired AblePlus, a Mumbai-based IoT solution provider, In addition, Amazon has also invested in vernacular tech and launched its
to create an AI and IoT-based tech infrastructure for managing hotels and Hindi mobile app and website to tap into Hindi speaking customers majorly
assets. from tier-III cities and villages.
E-commerce players have been into aggressive competition and are eyeing to capture significant share of the consumer spending by
investing in disruptive technologies and expanding their business operations majorly in tier-II and tier-III cities.
2020 © Benori Knowledge. All Rights Reserved 20Developments and Trends
• M&As, Partnerships & Alliances
• PE Deals
• Market Trends
2020 © Benori Knowledge. All Rights ReservedQoo10 acquired
M&As, Partnerships & Alliances ShopClues
Value: US$ 70-100 M
List of major M&A deals in 2019
Bennett, Coleman & Co.
acquired Grofers India
Value: US$ 20.1 M
Info Edge acquired
Swiggy Medlife Happily Unmarried
acquired Kint.io acquired Myra Marketing
Value: Undisclosed Value: Undisclosed Value US$ 0.8 M
Jan- Feb- Mar- May Jul- Oct- Nov-
19 19 19 -19 19 19 19
Paytm Oyo Ebix acquired Flipkart acquired
acquired NightStay acquired Innov8 Yatra.com. EasyReward Software
Value: US$ 20.0 M Value: US$ 31.8 M Value: US$ 337.8 M Value: US$ 4.0 M
BrainBees Solutions –
FirstCry acquired Oi
Playschool
Value: Undisclosed
India has the highest number of unicorn startups after the US and China. In addition, the list is expected to add more than 10 members by
2020. Some of them are Bigbasket, MobikWik and Practo.
2020 © Benori Knowledge. All Rights Reserved 22
Source: Grant Thornton, News Articles, Company Website, Press releases, BenoriPE Deals
List of major PE deals in 2019
Angel investors NA goStops
Bubble size represents PE deal size in US$ M SAIF Partners, Sequoia Capital Urban Ladder
2.1
and Steadview Capital
Delivery Hero and vyCap Ventures, Madison 3.2 BeYouPlus
Glade Brook Capita Zomato Capital and Singapore Angel
105 Network
Tencent Holdings Ltd 150 PolicyBazaar
Mirae Asset Financial
Group, CDC Group and 150 BigBasket.com Lightbox Ventures, T Rowe Price, Alibaba, Ant
Alibaba Group Google, 3L Capital and 45 Dunzo Financial and SoftBank Vision 1000 Paytm
STIC Investment & STIC Fund and Discovery Capital
Ventures
SoftBank Group Corp, Grofers India Investcorp Bewakoof.com KB Global Platform Fund, The
11.2
KTB Ventures, Tiger 200 13 TravelTriangle.com
Fundamentum partnership
Global and Sequoia Fund I, RB Investments, SAIF
Capital Partners, Bessemer Venture
Partners
May Oct- Nov-
-19 19 19
Investor | Investee
India has the highest number of unicorn startups after the US and China. In addition, the list is expected to add more than 10 members by
2020. Some of them are Bigbasket, MobikWik and Practo.
2020 © Benori Knowledge. All Rights Reserved 23
Source: Grant Thornton, News Articles, Company Website, Press releases, BenoriMarket Trends
01
Image Search ▪ With a growing number of listed products on e-commerce marketplaces, e-commerce giants are focusing on
implementing product image search-based services. This would enhance consumer experience while shopping online
and reduce the time taken for searching products.
▪ In addition, Amazon India is working on integrating new search features that will also include images.
02
Festive Season Sale ▪ E-commerce players witnessed major boom in sales value and volume during the festive season on their websites
and mobile applications. Flipkart and Amazon India along with other e-commerce giants are investing heavily on
advertisements to promote their festive season offers and hire new temporary employees to fulfill the demand
surge during the festive seasons.
▪ Multiple payment options such as EMI, UPI and mobile wallet drove 60% of the overall sales of Flipkart during the
festive seasons in 2018.
03
Growing Space for ▪ With growing e-commerce market, niche players such as Nykaa in beauty care, Bigbasket and Grofers in grocery,
Lenskart in eyewear, Pepperfry in furniture retail, Clovia in lingerie and 1mg and Netmeds in selling medicines
Niche Players online will gain attention from customers across the country to grow their space in their specific market segments.
▪ However, major e-commerce players such as Amazon, Flipkart, Paytm and Snapdeal are focusing towards
expanding their footprint primarily in tier-II and tier-III cities to increase their consumer base and acquire new
customers from such regions across the country.
Subscription business model is getting traction in the e-commerce industry in India. For instance, Amazon launched Amazon Prime in 2016.
Also, Flipkart, Swiggy and Zomato launched Flipkart Plus, Swiggy Super and Zomato Gold respectively in 2018.
2020 © Benori Knowledge. All Rights Reserved 24Competitive Analysis
• Player Landscape
• Player Profiles
• Flipkart Online Services Pvt Ltd
• Amazon Seller Services Pvt. Ltd
• One97 Communications Limited
• Snapdeal Private Limited
• Bundl Technologies Pvt Ltd
2020 © Benori Knowledge. All Rights ReservedPlayer Landscape
eTail eTravel Others*
According to the survey conducted by PayPal, in India, Facebook, WhatsApp and Facebook Messenger are the most used social media
platforms by the merchants. In addition, social media platforms account for 79% of e-commerce in India.
2020 © Benori Knowledge. All Rights Reserved 26
Source: Company Website, Press Releases, BenoriCompany Profile: Flipkart Online Services Pvt Ltd (Flipkart)
Recent Developments:
Company Overview In July 2019, Flipkart Group announced the launch of
Company Name: Flipkart Online Services Pvt Ltd. Samarth, an initiative to uplift various artists, weavers and
Founded In: 2007 handicrafts in India through e-commerce.
In May 2019, Flipkart Group announced to launch Flipkart
Headquartered: Bengaluru, India
Supermart, an online grocery store with its operations in
Founder: Sachin Bansal and Binny Bansal Mumbai. It includes products such as FMCG, staples and
Key Executives: dairy products.
Kalyan Krishnamurthy (CEO)
Emily McNeal (Group CFO) M&As/Joint Ventures/Partnerships:
Website: www.flipkart.com In November 2019, Flipkart invested US$ 4 M in
EasyReward, a customer engagement and rewards platform
Key Statistics that offers customer engagement solutions to merchant
sellers transacting on Flipkart’s platforms.
Registered Users: 100+ M (as of 2018) In September 2019, Flipkart Group and the Government of
Average Sales Per Order: US$ 27.9 (*Festive season – Oct to Nov) Jharkhand signed an MoU to launch Samarth in Jharkhand.
Funding Received: US$ 7.7 B in 22 Rounds (Till 3rd The program will provide online business to weavers,
December 2019) artisans and craftsmen of Jharkhand.
Major Stakeholder: Walmart (81.3%), Tencent (5.4%), Binny In September 2018, Flipkart Group acquired Upstream
Bansal (4.2%), Tiger Global (4.8%), Microsoft Corp. (1.5%), Accel (1.4%), Iconiq Capital
Commerce, an Israel-based company to build advanced data
science-based intelligent solutions and strengthen
(0.98%), Temasek (0.3%) and UBS (0.2%)
selection and pricing capabilities.
Turnover:
2019: US$ 6,269.1 M 2018: US$ 4,710.8 M
Flipkart has partnered with Federation of Indian Chambers of Commerce & Industry (FICCI) to launch a series of workshops across India for
MSMEs, which would help in understanding how e-commerce marketplace can help in increasing brand visibility.
2020 © Benori Knowledge. All Rights Reserved 27
Source: Company Website, Press Releases, News ArticlesCompany Profile: Amazon Seller Services Pvt. Ltd (Amazon)
Recent Developments:
Company Overview In September 2019, Amazon India announced to unveil
Company Name: Amazon Seller Services Pvt. Ltd. long-term sustainable packaging initiatives and its
Founded In/Started Ops in India: 2013 commitment to eliminate the use of plastics from its
Headquartered: Hyderabad, India packaging by June 2020.
In August 2019, Amazon India launched Military Veterans
Founder: Jeff Bezos
Employment Program dedicated to creating substantial
Key Executives: opportunities for military veterans as well as their spouses
Amit Agarwal (Global Senior VP and Country Head) across Amazon’s delivery centres, sort centres and fulfilment
Raghava Rao (VP Finance & India CFO) centres in India.
Website: https://www.amazon.in In August 2019, Amazon India launched Amazon Fresh store
with 2-hour delivery facility for select pin-codes in
Key Statistics Bengaluru.
Registered Users: 150 M (as of 2018)
M&As/Joint Ventures/Partnerships:
Average Sales Per Order: US$ 20.6 (*Festive season – Oct to Nov) In April 2019, Amazon India announced an alliance with
Funding Received: NA Ketto, a crowdfunding platform to introduce a program
Major Stakeholder: NA ‘Amazon Wings’.
Turnover: Launch of this program will help Amazon sellers to use
2019: US$ 1,118.0 M Ketto’s platform for initiating fundraisers at a
2018: US$ 771.2 M subsidised fee.
Amazon invested US$ 626.6 M in its three-business units in India (Amazon Seller Services, Amazon Pay and Amazon Retail). Amazon Seller
Services received US$ 476.4 M, Amazon Pay received US$ 26.1 M, while Amazon Retail received US$ 24.2 M.
2020 © Benori Knowledge. All Rights Reserved 28
Source: Company Website, Press Releases, News ArticlesCompany Profile: One97 Communications Limited (Paytm)
Recent Developments:
Company Overview In December 2019, Paytm Payments Bank announced the
Company Name: One97 Communications Limited offering of corporate salary account. The account offered
Founded In: 2010 substantial features for both employer and their employees.
In March 2019, Paytm launched Paytm First, a subscription-
Headquartered: Noida, India
based loyalty and reward program for its users. The
Founder: Vijay Shekhar Sharma customer can use the service by paying an annual fee of US$
Key Executives: 10.50 (Rs 750) coupled with an inaugural cashback offer of
Vijay Shekhar Sharma (CEO) US$ 1.40 (Rs 100). The program includes various
Amit Sinha (COO-Paytm Mall) subscription and membership offers from Uber Eats, Zomato,
Website: https://paytm.com The Man company and OYO among others.
Key Statistics M&As/Joint Ventures/Partnerships:
In May 2019, Paytm partnered with Citigroup Inc., a US-
Registered Users: 350 M (as of 2019) based investment bank and financial services corporation to
Average Sales Per Order: US$ 18.4 provide cashback-driven credit card marketed by Paytm and
Funding Received: US$ 2.5 B underwritten by Citigroup.
Major Stakeholder: Alibaba.com Singapore E-commerce (30.2%), In January 2019, Paytm acquired NightStay, a Noida-based
SB Investment Holdings (21.1%), Alipay Singapore E-commerce (15.9%), SAIF Partners
company that offers deals on last-minute hotel bookings
through their mobile app. The acquisition will further help
(18.7%) and Vijay Shekhar Sharma (9.7%)
Paytm to enter the hotel booking business too.
Turnover:
2019: US$ 477.1 M
2018: US$ 496.4 M
On November 2019, Paytm raised US$ 1 B by US asset manager T Rowe Price along with existing investors Ant Financial and SoftBank Vision
Fund.
2020 © Benori Knowledge. All Rights Reserved 29
Source: Company Website, Press Releases, News ArticlesCompany Profile: Snapdeal Private Limited (Snapdeal)
Recent Developments:
Company Overview Till December 2019, the company added additional 3,500
Company Name: Snapdeal Private Limited pin codes to its logistics network. As a result, the company
Founded In: 2010 is now delivering across 26K pin codes across the country.
Headquartered: New Delhi, India In November 2019, Snapdeal joined International
Trademark Association (INTA) to support protection of
Founder: Kunal Bahl and Rohit Bansal
intellectual property on online marketplaces.
Key Executives: In July 2019, the company announced that it has raised
Kunal Bahl (CEO) funding of an undisclosed amount from Anand Piramal, the
Rohit Bansal (COO) Executive Director of Piramal Group.
Website: https://www.snapdeal.com
M&As/Joint Ventures/Partnerships:
Key Statistics In September 2019, Snapdeal partnered with National
Payments Corporation of India’s RuPay to offer discounts to
Registered Users: 80+ M (as of 2018) its credit and debit card users in the festive season sale.
Average Sales Per Order: US$ 15.6 The partnership will enable approximately 600 million
Funding Received: US$ 1.8 B (July 2019) RuPay users to gain 20% discount during checkouts from
Major Stakeholder: Softbank (36.1%), Nexus Venture Partners (11.2%), Snapdeal’s website.
eBay Singapore (5.7%), Alibaba (4.4%), Foxconn
(4.4%), Temasek (2.9%)
Turnover:
2019: US$ 13.3 M
2018: US$ 8.2 M
With growing focus towards expanding logistics network, Snapdeal is also gaining traction from non-metro segment, with almost 90% of the
total orders coming from non-metro cities.
2020 © Benori Knowledge. All Rights Reserved 30
Source: Company Website, Press Releases, News ArticlesCompany Profile: Bundl Technologies Pvt Ltd (Swiggy)
Recent Developments:
Company Overview In Sept 2019, the company launched Swiggy Go, an
Company Name: Bundl Technologies Pvt Ltd (Swiggy) additional service for pick-up and drop of personal
Founded In: 2014 packages.
In August 2019, the company launched Swiggy Store, a
Headquartered: Bengaluru, India
personalised service that allows customers to order any
Founder: Sriharsha Majety and Nandan Reddy product from any retail store in Gurugram. The company is
Key Executives: anticipated to steadily expand the services in Bengaluru
Vivek Sunder (COO) and Hyderabad.
Rahul Bothra (CFO) In June 2019, the company launched “Daily”, a
Website: https://www.swiggy.com subscription-based homestyle meal app with zero delivery
fee in Gurugram.
Key Statistics In February 2019, the company invested US$ 4.4 M in
Fingerlix, a ready to cook startup company.
Registered Users: NA
Average Sales Per Order: US$ 4.4 M&As/Joint Ventures/Partnerships:
Funding Received: US$ 1.5 B in 10 rounds (December 2018) In February 2019, Swiggy acquired a startup that
Major Stakeholder: NASPERS (39.0%), SAIF Partners (9.2%), Accel specialises in applying deep learning and computer vision
(8.5%) and Norwest Venture (8%)
techniques for object recognition in videos. The acquisition
of the company is focused on their long-term strategy of
Turnover: making an AI-driven platform to enhance customer
2019: US$ 161.2 M experience.
2018: US$ 6.4 M In August 2018, the company acquired Scootsy, an on-
demand delivery firm, to expand its delivery network.
As of December 2019, with presence in over 500 cities and towns, 140,000 restaurants associated on its platform and 2.1 lakh active
delivery partners, the company is catering 1.4 million food orders daily.
2020 © Benori Knowledge. All Rights Reserved 31
Source: Company Website, Press Releases, News ArticlesBenori Knowledge is a global provider of custom research and analytics
solutions across industries, including consumer & retail, technology, media &
telecom, internet & e-commerce, professional services, financial services,
healthcare, industrials and education & social. We offer solutions aimed at
supporting our clients’ strategic needs that are critical to accelerate their
growth and value creation.
Our team of knowledge consultants is committed to minimising the
challenges faced due to high costs, poor access and low quality of knowledge
processes, and transforming them to deliver world-class and cost-effective
information, intelligence and insights.
Headquartered in India, we serve clients across the world.
Simplifying Decisions.
info@benoriknowledge.com
benoriknowledge.com
2020 © Benori Knowledge. All Rights Reserved 32You can also read
