2014 has been a special year for all of us. As ecommerce enthusiasts it was heart throbbing to see start-ups such as Flipkart with Rs 4 lakhs of initial capital bringing in 1 billion dollars’ worth of funding with Myntra in its kitty and vertical players such as Urban Ladder managing to scale and raising funds for its operations , with various leaders emerging in their niche and with buzz about online shopping at an all-time high on 6th October about ‘The Sale’ which no person could have ever imagined. Definitely this was the year of e-Entrepreneurs with surprise of mobile shopping pioneered by Paytm transforming itself from mobile recharge to online shopping company with volumes crossing over IRCTC volumes and year of ‘oops’ such as Big Billion Sale Frenzy to shipping of empty boxes to customers with Amazon facing tax issues with Karnataka government, the ecommerce has evolved in 2014, here is the glimpse of what happened….
Surprising Funda of ecommerce Players – The ‘exclusivity’ tag
Exclusivity was the funda for many eCommerce players as differentiation starts with products or services. This is where focus was on during 2014 by prominent players
- Motorola & Xiaomi , pre-launch of Chetan Bhagat’s Half Girlfriend exclusively on Flipkart ,
- Coke Zero, xbox, Samsung Galaxy Zoom & One plus One for Amazon ;
- Housing by Tata Value Homes Ltd, & Jolla smartphone for snapdeal.com and many more for other eCommerce players.
Funding Rewind ( Credits Yourstory.com )
- 1 Billion of Funding for Flipkart Vs 2 Billion of Investment by Amazon
- The financial service arm of the Japanese telecommunication and internet corporation, SoftBank Internet and Media, Inc. (‘SIMI’) committed $627 million funding in New Delhi-based online marketplace, Snapdeal. Following the investment, SoftBank became the biggest stakeholder in the company.
- In February this year, Kunal Bahl-led Snapdeal amassed $133 million funding led by eBay, Kalaari Capital, Nexus Venture Partners, Bessemer Venture Partners, Intel Capital and Saama Capital.
- Mukesh Bansal-led Myntra secured $50 million (about Rs.300 crore) investment led by Premji Invest along with existing investors Accel Partners and Tiger Global.
- Grocery and veggie etailer Bigbasket snapped up $33 million from Helion Ventures, Ascent Capital, Zodius Capital and Lionrock Capital in September this year.
- Fashion e-commerce major Jabong secured $27.5 million (Rs 173 crore) from British development finance institution CDC in a deal in February 2014.
- Furniture e-tailer Urbanladder closed $21 million (approx Rs.120 crore) Series B funding from Steadview Capital along with the existing investors, SAIF Partners and Kalaari Capital, in January this year.
- Online baby care portal Firstcry received $15 million funding (Rs. 92 crore) from Vertex Venture Management, a subsidiary of Singapore’s state run investment company Temasek Holdings.
- Web-based fashion discovery platform Limeroad raised $15 million investment from New York-based Tiger Global, including existing investors, Lightspeed Venture Partners and Matrix Partners, India.
- Furniture and home products marketplace Pepperfry raised $15 million funding led by Bertelsmann India Investments (BII), including Norwest Venture Partners (NVP).
- Smile Group-backed flash sales portal Fashionandyou secured $10 million (Rs. 60 crore) from its existing partners — Sequoia Capital, Smile Group, Norwest Venture Partners, Intel Capital and Nokia Growth Partners — and a new investor in June this year.
- Online Indian ethnic wear store Cbazaar received funding of Rs. 30 crore to Rs 50 crore from private equity firm Forum Synergies among others.
- Online lingerie store PrettySecrets pulled off $2 million Series A round led by Rehan Yar Khan of Orios Venture Partners and co-invested by India Quotient along with participation from prominent angel investors like Anupam Mittal and Ravi Gururaj.
- Etailer of funny and quirky products Happilyunmarried secured $0.65 million (Rs.4 crore) from InfoEdge. The investment was done through optionally convertible cumulative redeemable preference shares.
Big Spread of eCommerce
Big Billion Day Sale vs Snapdeal Sale, Buzz for Retail in India with combine 1200+ crore of sales in a single day ( from Flipkart & Snapdeal as per ABP News ) ! That’s a definite Win-Win for Indian ecommerce.
GOSF 2014: with Flipkart is missing from GOSF, benefits passed on to other players with no glitch this time, it is sale well taken care of.
About changes in them
- Flipkart – Opening of its platform to third party sellers ( Officially )
- Paytm – from recharge to online marketplace
- Bluegape – From Online Marketplace for Artists to Blog on Entertainment
- IRCTC Store – Still no way
- Yebhi – From Online Marketplace to Online Aggregate for Fashion & Home Products.
- May – Myntra.com gets acquired by poster boy of Indian e-commerce, Flipkart. The deal values Myntra reportedly at Rs. 2,000 crores and is a 100% acquisition in cash and stock. After the acquisition, Myntra will continue to operate as a separate entity with the CEO of Myntra heading Flipkart’s fashion business. (via Times of India)
- December – Wishpicker by Snapdeal , acquired for strengthening Recommendation engine at Snapdeal.com
Deadpool of company
- August – Flipkart pulls the plug on its payment gateway, PayZippy. The news co-incides Flipkart’s recent strategic investment in Ngpay. It is believed that closure of Payzippy is a result of PayZippy not becoming a wallet before RBI changed its plans. (via MediaNama)
- April – Allschoolstuff.com after selling over a million school & learning products has closed down its operations. The site was active for 3 years and raised $1 million. Failure to raise another round of funding was the cause for the closure. (via NextBigWhat)
and many more shutting down unnoticed.