Funding Squeeze Causing Stricter Evaluation of E-commerce Models
A tightening funding environment has prompted Indian e-commerce ecosystem to adopt stricter evaluation norms for business models, with focus on profitability and consolidation, a report said.
"We believe this (e-commerce) shake-up may intensify further, leading to the emergence of one or two strong companies within each sub-sector," said the research report by Kotak Institutional Equities.
A lack of fresh funding as well as stricter focus on profitability by investors is leading to swift business model changes by companies, it said.
Further, the current wave of consolidation among e-commerce players may intensify, leading to fewer, stronger players emerging within each category.
"Low valuations may prompt brick-and-mortar companies to take over some e-commerce rivals, in a bid to mak...
