Recap–The Ecommerce Fortnight That Was [Acquisition, Funding, BigDaddy and more]
What a start for 2012!
While 2011 witnessed a big boom in ecommerce funding, 2012 is when we will witness the stories that will differentiate the boys from men (no sexism please). More than $400mn was poured in ecommerce businesses in 2011 and given the nature of ecommerce business,i.e. less margin, higher infrastructure/delivery cost – the consolidation has already begun as investors have started getting a hang of the real real numbers in this industry.
Recap – The Ecommerce Fortnight
The big news was of Flipkart’s $150mn funding. Tiger Global led the $150mn round in Flipkart (Accel Partners too participated).
Post funding, Flipkart’s first mega acquisition is LetsBuy, a company that was giving Flipkart a tough competition in consumer electronics category.
Junglee : The BIG Threat
Amazon entered India with a completely different plan – i.e. instead of launching a full fledged ecommerce store, they launched a price comparison service called Junglee.
Our coverage of Junglee
- Why Junglee is a Brilliant Move by Amazon
- This is why Amazon’s Junglee is gonna SMASH the B**ls of Indian e-Commerce players
Lotsa debate, but keep in mind that Amazon is known to be a long term player and while Amazon is taking its own time to understand what Indians buy, the big piece of news came from Indian government.
Amazon to Setup Courier Service in India
Indian government has granted Amazon approval to setup its logistics service in India and as we shared earlier, Mumbai could be the delivery hub for Amazon India operations. This is the last mile for Amazon’s entry in India and be assured that Amazon will acquire a few logistics player instead of overyhyped ecommerce sites.
Flipkart’s Acquisition of LetsBuy
Flipkart has been acquiring dead companies (weread, chakpak) for acquiring talent, but the most significant acquisition came with LetsBuy, a rival.
Read our coverage of LetsBuy acquisition:
- Flipkart to acquire LetsBuy–Here is what really happened with LetsBuy [Updated]
- It’s official: Flipkart Acquires LetsBuy. Our Take – “Welcome Junglee. You have set the Jungle on Fire”.
- Letsbuy and Flipkart – A marriage of INCONVENIENCE!!
- Why Flipkart’s Acquisition of LetsBuy is a Great Story for the Startup Ecosystem
After LetsBuy, the $19 mn funded Exclusively.IN is for sale. The team wants to focus on Shersingh label.
Myntra: $20mn Funding
Bangalore based Myntra raised $20mn funding, led by Tiger Global and the company is aiming revenues of Rs 500 crores in the financial year 2012- 2013. The company claims to be shipping up to 10,000 products every day and has received a total funding of $40mn.
So what’s the future of ecommerce? If you are funded, should you run for more investment? And if you are unfunded, should you opt for a new industry?
Well, all we know is that this is probably the best time to build an ecommerce business in India. Having said that, it’s an Ostrich time for E-Commerce Companies in India?. That is, build more fundamental to the business than buying adwords.
What’s your opinion?
Forum Discussion: Predict future mergers and acquisitions in Indian E-commerce?