According to Morgan Stanley, India received $6.6 billion venture capital and private equity investments in the year 2015. This contributed to the steep growth for ecommerce companies. The Indian markets have huge potential, the main opportunity is to make the story compelling for global investors. The key ideas will be deeper Internet penetration leading to rise in the number of online shoppers and increase in per capita income.
A prominent US bank said, “We expect Internet penetration to increase from 32% in 2015 to 59% in 2020, translating to a near-doubling of the Internet user base,” it has estimated India to have almost 320 million online shoppers by 2020. The report further stated, the Per Capita Incomes are likely to double by 2025 and it will drive high aspirations of the Indian consumer.
The year 2015 saw dominance of top three online retail platforms with a combined market share of 83%. Flipkart at No. 1 position with 45% market share. It was followed by Snapdeal at 26% and Amazon India at 12%. The total GMV of the top three ecommerce companies stood at $13.8 billion as compared to offline retailers standing at 12.6% for the year 2015.