E-Commerce :

Indias next big opportunity or a bubble?

September 2013

Index
Executive Summary
Sector Overview
Evolution of E-Commerce in India
Enablers of E-Commerce
Business Models & Key Players
Segment Analysis
I. Online Travel Largest Segment
II. E-Tailing Fastest Growing Segment
III. Classifieds
IV.Other Segments
Michael Porters Analysis of the E-Commerce Industry
Changing industry dynamics due to entry of Amazon
Next big opportunity or a bubble?
Profiles of Major Players
I.

Private Players

II.

Public Players

M&A in Indian E-Commerce

Most Active Investors
1

Executive Summary
The current size of the
Indian E-Commerce
industry is US$ 9.48
Bn and it has grown at
a CAGR of 35% during
the past 3 years

The E-Commerce industry in India has come a long way since the tumultuous years of the dotcom bubble. ECommerce has been experiencing stupendous growth in recent times which has led to a boom in the online
travel and E-Tailing segment in India. But the real question is whether the industry can sustain this highgrowth momentum or not?
The trend of online shopping is set to see greater heights in the coming years, not just because of Indias rising
internet population, but also due to changes and growth in the supporting ecosystem
Earlier the flood gates were opened by online travel sites such as Indian Railway Catering And Tourism
Corporation (IRCTC) and makemytrip.com which changed the way Indians booked travel tickets. Now E-Tailing
or online retailing has taken the center stage and has seen faster growth than all other E-Commerce segments
The industry has attracted millions of online consumers by creating a secure online transaction
environment, facilities such as Cash-on-delivery (COD), and a strong focus on customer service that led to
Indian consumers placing their trust in online shopping
The major challenges for the online industry till date remain logistics & fulfillment and cash on delivery
dependency of new customers. The logistics part remains an external challenge which retailers cannot
overcome in a short span of time. While cash on delivery is essential in a nascent E-Commerce market, it
impacts business margins negatively and increases the cash burn rates in the long-run

Online travel is the

largest segment in
India constituting
~73% of the total ECommerce market
followed by ETailing, financial
services and
classifieds which
constitute14%, 6% and
5% respectively

At present E-Commerce companies in India have rushed to make announcements on new offerings and also
are strategizing fast on their next move and some have even started tweaking their business models, in the
wake of Amazons entry in India (becoming reseller of goods rather than daily deals websites)
However, the industry is facing some tough challenges to stay afloat because only a handful of entities are
making money if at all and investors are no longer interested to burn their money in the current price sensitive
market which is showing few signs of recovery in the next few years
The industry is reaching a phase of consolidation as many multi-category players such as Flipkart and
SnapDeal have started acquiring niche players in order to widen their offerings and about. Approximately, 70%
of venture-funded Indian E-Commerce companies are expected to disappear over the next one year or so, as
the local industry undergoes significant consolidation (acquired or shutdown)
As the Indian E-Commerce space becomes more and more crowded, it is imperative for investors to look at
new white spaces in this sector such as a specialized logistics providers to the E-Commerce industry or
players offering innovative products / services. Also, investors are going back to the basics quickly and are only
willing to back those existing players who possess robust business models and visible profit margins and have
a clear path to provide an exit

Sector Overview
Market Size (US$ Bn)2

Sector Overview in India

India has an internet user base of ~150 mm as of Feb 20131. The
penetration of E-Commerce in India is low as compared to markets
such as China (at 575 mm) and the US (275 mm)

12.60
9.48

The internet penetration in India remains at 12% versus 43% in China

and 80% in the US, and in terms of internet speed India ranks 109th
However, the low penetration means that India presents an
unprecedented growth opportunity for the Internet sector in the
coming years
India is likely to see a golden period of the E-Commerce sector
growth between 2013 to 2018, the questions is whether it will be
profitable

7.03
3.85

2009A

Key Drivers of E-Commerce

Increasing broadband Internet services and growing 3G penetration
in India
Rising standards of living and a burgeoning, upwardly mobile middle
class with high disposable incomes
Lower prices compared to brick and mortar retail model driven
by disintermediation, reduced inventory holding and real estate costs
Busy lifestyles, urban traffic congestion and lack of time for offline
shopping
Evolution of the online marketplace model with websites such as
Flipkart, Snapdeal, ebay etc. has come a full circle with marketplace
models taking center stage
1
2

2013 India Internet Outlook, Techcircle.in

Internet and Mobile Association of India, April 2013

Estimated
Y-o-Y
Growth 33%

5.26

2010A

2011A
2012A
Calendar Years

2013E

Market Segmentation (Dec 2012)

Financial
Services
6%

Classifieds
5%

Other Online
Services
2%

Dominated by
online travel
industry

E-Tailing
14%

Online Travel
Industry
73%

Total Market Size ~ US$ 9.48 Bn

Evolution of E-Commerce in India

Evolution story

2nd wave (2006 present)

1st wave (1996-2000)

Launch of internet
in India via dialup in
6 cities

1996

August 1995

Entry of a large
number of big
players in E-Tailing
segment

Muted activity in
the industry due to
dotcom bubble in
2000

Launch of online
job portals

2010

2006
1997

2000

Launch of online
B2B and online
matrimonial portals

2005

2007

Launch of online
travel agents
(OTAs)

1st Wave Advent of online sites Naukri.com and Shaadi.com

Launch of first
group buying
website in India
New trend of using
social networking
sites (SNS) as a
marketing tool
begins thus leading
to the advent of
social commerce

2nd Wave - Duplication of global business models (me too strategy) and improvement in the ecosystem

Enablers of E-Commerce
Indias fast growing base of ~150 million Internet users is currently the third largest in the world, and the pattern of online behavior is rapidly
converging with that of users in developed countries
Advent of smart-phones leading to m-commerce
Smart Phone Users in India (Mn)

Acceptance of online payments by Indian Consumers

Cash / COD
7%

450

All others
2%

MasterCard
12%
250
Direct Debit
58%
Visa
21%

40

2012

2015

2020

Indias projected 330 million to 370 million Internet users will form the second-largest Internet population in the world by 2015

Internet Users and Penetration (2011)

2500

2300

80%

77%

2000
1500

34%
1000

38%

10%

480
500

245
120

102

0
Global

China

United
States

Internet Users

India

Internet Users and Penetration (2015)

90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

3000

2662

86%

84%

2500
2000
1500

28%

43%

43%

1000

583
279

350

United
States

India

500

105

Japan

% Penetration

Global

China

Internet Users

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

Internet penetration
based on current
population is expected to
substantially increase
within the next 2-3 years
from 10% at present to
28% by 2015

Japan

% Penetration

Source:- McKinsey, Online and upcoming: The Internets impact on India Dec 12

Business Models & Key Players

Modes of E-Commerce transactions
C2C

B2C

Online Classifieds
Online Retail
Currently small, set to grow with
the entry of several players

Online Travel
Online retailing/E-Tailing
Online Classifieds
Digital Downloads
Financial Services

B2B
Online Classifieds

Most common users are SMEs

Generates bulk of revenues

Online Travel

E-Tailing

Customers buy
tickets, book hotels and
purchase tour packages
online. The ticketing
services can be for
airlines, railways or
buses

Online sale of products

such as books, mobile
handsets, mobile
accessories, electronics
and home and kitchen
appliances among others

Online Classifieds

Portals connecting
buyers and sellers by
providing classifieds
space where the sellers
can advertise their
product, jobs etc.

Financial Services

Online sale of insurance

related services, utility
bill payments, online
transactions such as
purchase / sale of shares
and securities

Other Online Services

Includes services such

as online entertainment
ticketing, online food
delivery, online grocery
delivery

Segment Analysis
I. Online Travel Largest Segment
Segment Size (US$ Mn)2

Segment Overview
The growth in Indias travel and tourism industry is the second
fastest worldwide and India is poised to be among the top five civil
aviation markets in the world over the next decade

8.99

The growth of the services sector (driven by rising household

income, an expanding middle class and more inbound and
outbound tourism) is responsible for this rapid growth in the online
travel booking segment
As the inter city migration has increased, a proportional upward
trend is seen in usage of transport including railways and air travel
Low entry barriers in the online travel market have resulted in a
number of small players entering this space. The market is now
cluttered with a mix of large Indian Online Travel Agents (OTAs), as
well as several small players and international players

Market Share Analysis1

Others

5.32

Estimated
Y-o-Y
Growth
33%

4.09
2.99

2009A

2010A

2011A
Calendar Years

2012A

2013E

Segment Composition (Dec 12)

Hotel Bookings
2%

10%

18%

6.91

48%

International Air
tickets
6%

Railway Tickets
39%

Bus Tickets
2%

Tour
Packages/Trav
el Insurance
1%

Domestic Air
Tickets
50%

24%
* Numbers take into account Indian Online Airline Market
1 Makemytrip.com, Company presentation
2 Internet and Mobile Association of India, April 2013

Total Market Size ~ US$ 6.9 Bn

Segment Analysis
II. E-Tailing Fastest Growing Segment
Segment Size (US$ Mn)1

Segment Overview
The online retail/E-Tailing industry clocked revenues of US$ 1,292
Mn in 2012, growing at 68%, a rate faster than any other ECommerce segments

2,002

The segment is expected to touch revenues of US$ 2,002 Mn by the

end of 2013 and is also expected to match the revenues of the
largest segment, Online Travel, in the coming few years and
thereafter, surpass it quickly

Players that emerged as category leaders were those that were able
to penetrate their target market deeply to offer a large range of
products by spreading their operations beyond the top cities
There has also been consolidation in the market, with larger players
acquiring small single-category ones to enhance their portfolios (for
example, SnapDeals acquisition of eSportsBuy.com)

Challenges in the E-Tailing market

1,292

769
475
310

2009A

2010A

Increased competition with the entry of global players

2011A

2012A

2013E

Calendar Years

Segment Composition (Dec 12)

Lack of touch and feel - a mental barrier for online shopping

Lack of touch and feel in online shopping could lead to
issues such as wrong product sizes, higher returns

Estimated
Y-o-Y
Growth
55%

Others
Products
3%

Books
4%

Laptops/tablets
24%

Apparels +
Footwear
21%

The advanced technological capabilities of global players in

areas such as customer analytics and recommendation
engines would pose a challenge for local companies

Jewellery
4%

Low margins prompting E-Commerce players to look at new

business models
A majority of E-Commerce companies are price players due
to the stiff competition they face and the race to acquire the
maximum number of eyeballs. This results in very low
margins or none at all
1Internet

and Mobile Association of India, April 2013

Home
Furnishings
3%

Mobile phones
19%
Total Market Size ~ US$ 1,292 Mn

Cameras
14%

Consumer
Durables
8%

Segment Analysis
II. Online Retail Structure
Online Retail

Vertical Focused Players

Multi-Category players

Deal in specific category of goods such as apparel, electronics and

baby products

Deal in multiple categories of goods

Fashion & Lifestyle

Babies, Kids & Mother-care

Electronics, Gadgets, Watches & Phones

Jewellery
Revenue Mix (2011)1

Multi-Category
Players
46%

Furniture, Furnishings & Home Decor

EY, Rebirth of E-Commerce in India

Verticle
focused players
54%
Revenue ~ US$ 769 Mn

Segment Analysis
III. Classifieds
Segment Size (US$ Mn)1

Overview
Overall, the classified market in India will be driven by the growth
in the services sector, favorable demographics and growth in
advertising

613
471

The Classifieds market comprises of two segments :

Online Classifieds
Comprises of extensive ad
space and structure
Longer messages and use
of graphical text

337

Offline Classifieds
Newspapers comprise a
major part of this segment
Ads are typically short and
are charged on the basis of
number of words and are
mainly text with no graphics

Estimated
Y-o-Y
Growth
30%

217
155

2009A

Major Types of Classifieds

2010A

2011A
2012A
Calendar Years

2013E

Segment Composition (Dec 12)

B2B Classifieds
13%

Recruitment Services
Other B2C
Classifieds
7%

Real Estate Advertising

Online
Matrimony
22%

Matrimonial Services

Online Jobs
59%

Total Market Size ~ US$ 471 Mn

Automobile Advertising
1Internet

and Mobile Association of India, April 2013

10

Segment Analysis
IV. Other Segments
Financial Services
Segment Size (US$ Mn)

Segment Composition (Dec 12)

722
Securities
Trading
31%

578
451

308

2009A

Insurance
Related
Services
29%

370
Estimated
Y-o-Y
Growth
25%

2010A

2011A
Calendar Years

2012A

Utility Bill
Payments
including
Mobill Bill
Payments
40%

2013E

Total Market Size ~ US$ 578 Mn

Other Online Services

Segment Size (US$ Mn)

Segment Composition (Dec 12)

278
Online Grocery
Delivery
6%

222
159
86

2009A

Estimated
Y-o-Y
Growth
25%

104

2010A

2011A
Calendar Years

2012A

2013E

Online Food
Delivery
23%

Total Market Size ~ US$ 222 Mn

Online
Entertainment
Ticketing
72%

11

Michael Porters Analysis of the Indian E-Commerce Industry

Attractive but highly competitive
Threat of New Entrants - High

Threat of Substitute Products - Medium

Products are undifferentiated

Substitute products are cheaper and product quality

is equal or higher

Low initial capital investment required to setup the

business

The product performance of substitute products are

same or better

Distribution channels are easy to access

Low switching cost makes the industry more price

sensitive

Low consumer switching cost

Low Entry Barriers

Makes the industry competitive and
therefore decreases potential for
profits

Substitutes are easily available

Intensity of Rivalry - High
A lot of players that sell similar products, combined
with the low brand loyalty and low switching costs

Most of the competitors have similar market share

and to increase market share is tough
The availability of long tail products
(substitutes) and low switching costs
give a lot of power to buyers

High volatility in prices of Products

Bargaining Power of Buyers - High

There is no brand loyalty among the

consumers as they are always on the
look out for better deals

Suppliers have high bargaining power

because they are selling products that
are being sold on multiple websites

High negotiating power

Bargaining Power of Suppliers - High

Large number of buyers and highly price sensitive

Few suppliers and a lot of buyers

Low level of uniqueness among the products makes

it difficult for sellers to negotiate with buyers

Suppliers have equal power to negotiate with the

buyers (companies)

Buyers have tons of information about the

product, which is readily available on the websites
facilitating comparison among products

There remains a possibility for suppliers to forward

integrate and start selling the products on their own
websites hence increasing their margins

12

Changing industry dynamics due to entry of Amazon

How the industry will be shaped ?
"The Amazon move further
validates the potential of
the Indian market and
reiterates the importance
of the managed
marketplace model in
India"
-Kunal Bahl, CEO, Snapdeal

Fifteen months after the worlds largest online retailer Amazon staged a
tentative entry into the Indian market with the launch of
Junglee.com, the US online retailer in June 2013 announced the launch
of Amazon.in, a marketplace that will facilitate online transactions
between buyers and sellers in India
Amazon has been actively lobbying with the government to relax
regulations against foreign E-Commerce firms and allow FDI in online
retail
In a knee-jerk reaction, major Indian portals switched from an inventorybased approach (selling themselves) to a marketplace model (offering a
platform to third-party sellers) in order to effectively compete. Snapdeal
has pioneered this and are a zero inventory, managed B2C marketplace
Though the entry of Amazon into the Indian E-Commerce market further
increases the competition, on the flipside it is likely to improve the ECommerce landscape in terms of logistics, buyer protection and
consolidation. SMEs will also get one more credible marketplace as a
retail growth channel

This will slow down new

capital investments in ECommerce industry by
VCs and angels. The
industry is at a very early
stage evolution and
bringing 800 pound gorilla
this early does not make
sense.
-Sandeep Aggarwal, founder
and CEO of
ShopClues.com on how will
Amazons entry affect Indian
E-Commerce players

To counter the Amazon threat, Indian portals are cranking up sales in

Tier II and III cities, where Amazon will have a tough time gaining
customers. At present, the major Indian portals claim half their customer
traffic from Tier I cities, with the rest coming from Tier II and III cities
13.17

12.65

12.43

Amazon has gained significant

traffic share within one month
of being launched

11.92
8.45

Myntra
1

Comescore

Flipkart

8.11

Jabong
Amazon.in
Snapdeal.com HomeShop 18
Unique Visitors (Mn) June 20131

13

Next big opportunity or a bubble?

Startup Rush

Opportunity or Bubble?

The online shopping habit was initially started in 2003 by the no frills
airline Air Deccan in India which accepted bookings only through the
internet and the IRCTC

Compared to the rest of the world, Indian E-Commerce is in a

nascent stage. Considering the vast population coupled with the
projected growth of internet users, one cannot write off Indian ECommerce. On the other hand, in a complex market such as
India, profits take time to see the light of the day

The industry promoted by the spice of VC

money added to this pot boiler and this
started a mad rush by startups to grow the
market and attain the number one spot by
killing competition
The E-Commerce companies started
aggressive discounting and selling below
cost has enlarged the consumer appetite
but how many will end up surviving?

Struggle for Survival

The cost of customer acquisition in Indian E-Commerce is very high.
Normally, E-Tailing companies are spending around Rs. 1000-1200 in
television and newspaper advertisements in order to acquire a
customer order worth Rs. 400-500
The E-Commerce investors in India are once bitten, twice shy about
funding E-Commerce companies in India. An E-Commerce company
can bootstrap to a certain extent but scaling requires funds. A large
majority of them have failed in this scale - up phase
Consumers who were shopping online so far were doing so because
products were available on websites at deep discounts, and
consumers are always looking for a good deal. As E-Commerce
businesses run into funding issues, prices go up, and there is a natural
inclination for orders to drop

The industry is here to stay but will need to go through a significant

consolidation phase over the coming few years in order to become
profitable and provide investors with good exits
The issues faced by the E-Commerce companies are no more a secret
now, large players poured in millions of dollars to build alternative to
brick-and-motor stores and spending huge sums on marketing costs
but none of them are making profits even at the operating levels
The major challenge for the
E-Commerce
companies
remains
customer
stickiness, which in the
current scenario is lost due
too many players having
similar
business models
and
raging
price
wars, leading to a downward
spiral

The end result of this

situation is that the big
players havent been able to
see profits still, even after
guzzling venture capital in
the range of $40mn to
150mn each

An
Opportunity, but
will require
innovation; many
existing players
will perish soon

14

Profiles of Major Players

I. Private Players
Company
Name

Jasper Infotech Pvt. Ltd. owns

and operates the group
buying site Snapdeal.com. It
offers multi-channel direct
marketing solutions to its
clients. The company was
founded in 2010 and is based
in New Delhi, India.

Myntra Designs Pvt. Ltd. owns

and operates online retail
portal
myntra.com
which
offers E-Commerce and online
merchandising services. It is
engaged in providing an
online platform where one can
create or buy customized gifts
such as t-shirts, mugs,
calendars, watches, notepads,
shorts and coaster etc. The
company was founded in
2006 and is based in
Bangalore, Karnataka

Xerion Retail Pvt. Ltd.

is engaged in the retail
of
apparels,
accessories
and
footwears. It sells its
products under the
name
Jabong
and
Fabfurnish.
The
company was founded
in 2011 and is based in
Gurgaon, Haryana.

TV18
Home
Shopping
Network Ltd. is the online &
on-air retail marketing and
distribution venture of the
Network18 Group. It offers
internet and multimedia retail
services in India. It offers
electronics and computers,
cameras
and
mobiles,
jewellery and watches, etc.
The company was founded
in 2006 and is based in
Noida, Uttar Pradesh.

~300

~400

~100

NA

~37.5

Unique
Visitors Per
Month
(Millions)

12.64

8.45

13.17

NA

8.11

Disclosed
Investment
(US$ Mn)

401.29

113.73

64.30

NA

96.75

PE Funding

Accel India Venture

Fund (2013)
Tiger Global
Management LLC
(2013)
Iconic Capital LLC
(2013)
MIH Holding Ltd (2013)

Flipkart Online Services

Pvt. Ltd. is engaged in
providing internet retail
services. It offers an
online book retail portal
but now also sells mobile
phones, movies, games,
cameras, music players
through its online web
portal flipkart.com. The
company was founded in
2007 and is based in
Bangalore, Karnataka

Revenue
(US$ Mn)

Description

Indo US Venture Partners

(2013)
Bessemer Venture Partners
(2013)
eBay Inc. (2013)
Nexus India Capital (2013)
Intel Capital (2013)

Accel India Venture Fund

(2012)
Tiger Global Management
LLC (2012)
IndoUS Venture Partners
LLC (2010)
IDG Venture India Fund
(2010)

NA

OCP Asia Ltd (2013)

SAIF Partners Fund (2011)
GS Home Shopping Inc.
(2011)
Capital18 Fund (2008)

Note:- Revenues figures are only estimates

Exchange Rate 1 USD = 60 INR

15

Profiles of Major Players

I. Private Players
Company
Name
Times Internet Ltd. is a software
services company. It offers
internet and mobile value-added
services. The firms services
include VAS messaging service;
multimedia messaging, dating,
chatting, and email on mobile;
and e Wallet, NRI solutions,
invest online, book domains,
business
mail,
Web
site
designing, Web hosting, sales
CRM and hire models etc. The
company was founded in 1999
and is based in New Delhi, India

Shop Online Trading Pvt.

Ltd. is engaged in providing
internet retail services. It
offers footwear for men,
women, boys and girls. The
firm also offers jewellery,
such as anklets, bangles,
waist belts, and watches.
The company is based in
New Delhi. Shop Online
Trading Pvt. Ltd. operates
as a subsidiary of Big Shoe
Bazaar India Pvt. Ltd.

Accelyst solutions Pvt. Ltd.

owns and operates online
portal
freecharge.in.
It
offers an online platform
where it enables the user to
recharge their mobile phone
and
provides
discount
coupons of top Indian food
joints
and
retailers
equivalent to the recharge
amount. The company was
founded in 2008 and is
based
in
Mumbai,
Maharashtra.

Fingerprints
Fashions
Pvt. Ltd. owns and
operates
an
online
portal inkfruit.com, is an
online t-shirt store. The
firm designs t-shirts
which are submitted and
voted by the community.
The
company
was
founded in 2007 and is
based
in
Mumbai,
Maharashtra.

Clues Network Pvt. Ltd.

owns and manages an
online
web
portal
shopclues.com which is a
horizontal
E-Commerce
website featuring a range
of products such as
watches,
electronics,
sculpture items, apparels
etc. The company was
founded in 2011 and is
based
in
Gurgaon,
Haryana.

~46.671

~10.42

NA

~30

~50

Unique
Visitors Per
Month
(Millions)

NA

NA

NA

NA

3.5

Disclosed
Investment
(US$ Mn)

13.03

NA

3.94

5.50

16.00

PE Funding

500 startups (2012)

Jungle Ventures Pte. Ltd (2012)
Accel India Management Co.
Pvt. Ltd (2012)
Qualcomm Ventures (2012)

Description

Revenue
(US$ Mn)

Merger with Whiteboard

Info media Pvt. Ltd.

Sequoia Capital India

(2012)

Robe mall Apparels

Pvt. Ltd (2012)
SAIF Partners Fund
(2011)

Helion Advisors Pvt. Ltd.

(2013)
Nexus India Capital
Advisors Pvt. Ltd (2013)

Note:- Financials are on standalone basis

1 The financial data is for the financial year 2011

16

Profiles of Major Players

II. Public Players
Company Name

InfoEdge

Info Edge, led by Mr. Sanjeev

Bhikchandani, one of Indias most well
recognized entrepreneurs, is Indias
premier on-line classifieds company

Description

Products and Services

Sub-Industry
Financials (US$ Mn):
- Revenue
- EBITDA
- Net Income
Valuation Metrics (US$ Mn):
- Enterprise Value (EV)
- Market Capitalization
- EV / Sales
- EV / EBITDA
-P/E

'With a view to tap the growing Indian

market, it has made investments in start
- ups such as Etechaces Consulting
and Marketing Pvt Limited (Policy
Bazar), Happily Unmarried Pvt. Ltd,
Zomato Media Private Limited etc.
- The company operates in the e commerce space through its 9
websites, some of which are
Naukri.com (Recruitment),
JeevanSathi.com (Matrimony), 99
Acres.com (Real Estate), Shiksha.com
(Education) etc.
Online Classifieds

MakeMyTrip Limited is an online travel

company led by Mr. Deep Kalra. In
India, the Company conducts its
business principally through its Indian
subsidiary, MakeMyTrip (India) Private
Limited

Its services and products include air

tickets, hotels, packages, rail tickets,
bus tickets, car hire and ancillary travel
requirements, such as facilitating
access to travel insurance

-Led by Mr. V.S.S Mani, Just Dial is a

search engine company. It provides
users with information and user reviews
from the Company's database of local
businesses, products and services
across India
- The company went public in June 2013.
The IPO was over subscribed 12 times
and now shares a close association with
SAIF Partners, Sequoia Capital, Tiger
Global, EGCS and SAP Ventures etc.

Dial a Search service, Free Listing of

Businesses, Advertisement Services,
Events Support and Mobile Apps etc.

Online Travel

Online Classifieds

$78.33

$225.02

$60.46

27.64

(14.31)

16.81

15.27

(27.58)

11.41

521.62

$463.64

$700.53

558.55

498.16

785.49

6.66x

2.06x

11.59x

18.87x

NM

41.68x

36.59x

NM

68.84x

Note:- Financials are for the year ending March 2013, Shares prices as on 29 August 2013, Ex-change rate for USD-INR - 60

17

M&A in Indian E-Commerce

Recent Deals Consolidation in the market & exits by Private Equity Funds
S. No. Announcement

Target

15-Jun-13

Pilani Soft Labs (RedBus.com)

EV/Sales
Multiple

$138.00

~24.34x

NA

NA

12.51

NA

20

~0.62x

Jasper Infotech (Snapdeal.com)

9-Feb-12
eTree Marketing (Letsbuy.com)

Deal Value
(US$ Mn)

Nest Childcare (Babyoye.com)

4-Apr-12

eSportsbuy.com

Exit by

Ibibo (Naspers Group)

10-Apr-13

Purple E-Retail (Hoopos.com)

Acquirer

Flipkart

18

Most Active Investors

Investor

Major Investments

19

How Dinodia Capital Advisors can help

Our Offerings
With our deep understanding of the E-Commerce industry and our professional network, we can help
you:

Indentify categories which have high growth opportunities and companies within those

Find E-Commerce businesses to be acquired or sold

Bring strategic and financial investors to your E-Commerce business (Domestic and International)

Help your business find the most suitable partners

Provide advice on any related transaction terms, valuation and pricing

20

Dinodia Capital Advisors Private Limited

C-37, Connaught Place , New-Delhi 110001, Website - www.dinodiacapital.com
Tel No: +91 11 2341 7692, 2341 5272, Fax No: +91 11 4151 3666
Email: dinodiacapital@dinodiacapital.com

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copyrights. No part of this report shall be reproduced / copied / extracted etc. without the express permission of DCA in writing. This document is being supplied
to you solely for your information, and its contents, information or data may not be reproduced. Neither DCA nor its directors, employees or affiliates shall be
liable for any loss or damage that may arise from or in with the use of this information.