E-Commerce: Is It The Right Time to Enter With a Stake?
The Past & the Present......
From a minor customer base in 1990, e-Commerce in India is predicted to become the largest market in the world after the US and China in the year 2035. The potential of the sector is awaited to be tapped as the size is expected to expand to 200 bn USD (14.6 Lakh crore INR) in 2020 enticed by the surge in the purchasing power of the consumers and the expansive internet usage. The common factor in all e-Commerce is, it is one of the most fastest-growing industries and India although has an internet user base of 77.6 crores driven by the “Digital India” programme.
India's e-commerce sector is headed to reach US$99 billion by 2024 from US$30 billion in 2019, growing at a 27% CAGR. After Paytm announced its interest in going public, many e-Commerce companies like Zomato, Policy Bazaar, Flipkart, Ola, Byjus’ and Oyo are set to go public before the end of the year 2022.
Scope or Hope
- Byju’s surpassed Paytm to become India’s most valuable startup with their valuation at 16.5 bn USD and also ranked as the 11th most valuable start-up in the world.
- Info Edge India Ltd (NS: INED ) (Naukri), an online classifieds company that got listed at a mere 145.73 rupees on 24 Nov 2006 has now grown mammoth reaching an LTP of 4877 Rupees at the end of trading on 16 June 2021 growing an unimaginable 3242% in its 14-year blockbuster run.
- India Mart Ltd rocked the stock market with a 449.21% return since 5 July 2019.
- Intrasoft Technologies Ltd (NS: INSO ) which performed well till 2018 went up to 800% in 8 years. As this might be just the start, the usage of e-Commerce is already a part of our everyday lives with people started using major e-Commerce-based websites and apps like Flipkart, Snapdeal in the B2C segment, India Mart which is in the B2B segment.
- Avenue Supermarts Ltd (NS: AVEU ) (DMART) which is a retail corporation has already started its wing in e-Commerce and we also cannot forget its bumper performance of a whopping 433% in 4 years still running rock solid.
What is in......?
In the food segment, we have Zomato and Swiggy, Payments segment we have Paytm, Phone Pe and Travel segment has Ola, Dunzo in groceries and much more e-Commerce related business are coming into the market. Introduction to the digital gold- where anyone can buy gold in small fractions as low as Rs.10 is bound to be a game-changer, letting the gold be held in fractional quantities will help the consumers gradually stockpile the precious metal.
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