The Great Indian E-commerce thread

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Buys Myntra for $300M. Puts in another 1k crore. Uses it as a "test rat." Who else would do this but Flipkart?
I know that these companies like FK and SD like to buy off others brands with the hope of striking a "potential gold mine" a few years down the line in the future when population rise and the market gets bigger but damn if they have brands which add little or no value to their's they could lose a hell lot of money. Well Flipkart already has. And Snapdeal could be next. Freecharge anyone?
Myntra's planned entry into the U.S. market could be a last desperate move before flipkart kills it. Profitable by 2016 LOL.
"So guys we've already spent millions of dollas on this and haven't even earned a $1 dolla. How about we spent more, get into the crowded Umurican market and try to get back the $300M?" lol.
 
iPwnz said:
Buys Myntra for $300M. Puts in another 1k crore. Uses it as a "test rat." Who else would do this but Flipkart?
I know that these companies like FK and SD like to buy off others brands with the hope of striking a "potential gold mine" a few years down the line in the future when population rise and the market gets bigger but damn if they have brands which add little or no value to their's they could lose a hell lot of money. Well Flipkart already has. And Snapdeal could be next. Freecharge anyone?
Myntra's planned entry into the U.S. market could be a last desperate move before flipkart kills it. Profitable by 2016 LOL.
"So guys we've already spent millions of dollas on this and haven't even earned a $1 dolla. How about we spent more, get into the crowded Umurican market and try to get back the $300M?" lol.
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Stratup's buy other startup's when they fail to innovate enough to justify insane valuations and hence the only way to justify them is to buy out startups which promise growth and can leverage the technology and ops of the bigger parent to grow. there are some rare exceptions but i honestly don't think there are any in India
 
Yes but Myntra can't really be called a "startup" company anymore, it was well established (keeping the transaction value aside) even before the acquisition. My comment was more towards the value of $290-$300M. IIRC Flipkart already had its own clothing and apparels catalogue. Same goes for the Snapdeal+Freecharge deal. How many people use freecharge? Business analysts have also questioned the same about the acquisitions.
 
"We are being asked to achieve an 85% customer satisfaction score, which is impossible because the company's score has never crossed 62-64%,"
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I bet this is to impress the investors but is it possible to achieve that target? But <65% is way too low imo. Won't the company's policy matter a lot? Looking back at the e-com feedback news it seems to be because of the unfulfilment of orders.
How does Amazon do it on their side?
 
even in my company 100 ppl on same PIP like snapdeal. i thankfully escaped. i too hav started looking for a job , need a 32-35k/month operations /marketing /account management job. anyone has a refrence ?
 
OMG.
Falling Unicorn: Flipkart's value drops from $15B to $11B.
Its not only Flipkart.
In Silicon Valley, startups continue to face the heat of negative investor sentiment in their valuations
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The Morgan Stanley fund reduced the valve of its equity in Palantir Technologies for example, which is valued at over $20B by 32% from $11.38 per share to just $7.70 per share. The fund also marked down its stake in popular file hosting service Dropbox by 25%
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My only question is why did they do it?
Although the scenario is comparatively more grim in Silicon Valley, the situation is only marginally better in India
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Tech startups investments are slowing down from the flurry of the past few years with Q4 2015 representing a turning point. Investors are now looking for a sustainable business model and profitability rather than just initial disruption through technology. Further some current investors are now looking for exits from companies, which suggests impatience and a lack of confidence
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Not an expert but Duh!

https://news.google.co.in/news/stor...sMKCxzfCY7VGMWgJAEg0ZjO-bZM&topic=b&scoring=n
Trak.in
http://trak.in/tags/business/2016/0...n-2-possible-reasons-which-justify-this-move/

VB.
http://venturebeat.com/2016/02/27/f...ts-value-drops-from-15-billion-to-11-billion/

Anyone remember what happened to Alibaba? Their value fell by billions.
 
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So I have been binge watching Shark Tank and from what I saw there, I can understand why do investors invest in companies like these.
There have been many episodes where people come with profitable working products but none of the investors go for such ideas unless they are highly scalable. I have only seen Mark Cuban ( he turned down Uber just because he knew that they would have to burn through billions before becoming big) help out small companies but only when such companies can run without his efforts.
See, these guys are already very rich and hence they only want to invest if they can win big in the end. Most of the times it is either through getting acquired or by going public. And hence they don't mind taking a risk by taking losses.
 
I used to loved Shark Tank till I read about the production and acting on wiki (I want to but can't stop reading wiki! It always spoils everything. :( )
If I were a participant in the show as a contestant I don't think I'll ever accept what they offer me. I feel that the contestants don't get fair deals imo (show is aptly named). Instead I would *try* to find other source of investment or other investors.
With regards to flipkart devaluation I thought it would be a Nokia 2.0 with a cause and I wasn't wrong. If the valuation is extremely high no one may want to invest. It was apparently done to attract Alibaba (which also invests in Snapdeal).
Imo what these startups really need to do and should do is cut unnecessary costs/burn-rate especially on marketing and promotion. I'm sure their marketing staff can come up with better ideas. If not just fire them.
 
Infibeam IPO journey on a bumpy road.
Infibeam Limited’s Initial Public Offering (IPO) turned in to a disappointment on the first day.
It has time till March 23, 2016, to recover and may need the help of its bankers, SBI Capital and Elara Capital, to save the IPO. According to the data available with the BSE, out of the 12.5 million shares offered, only 5,58,586 shares were bid for on the first day. JustDial listed on May 20, 2013, and its IPO was oversubscribed 11.3 times. The shares offered were 17.5 million and the company’s market cap was more than Rs 3,000 crore.
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The rejection, of the company’s expected market cap of Rs 2,200 crore, sends a very strong message to other e-commerce companies. It signifies that listing in the Indian market based under current financial fundamentals, which is to acquire more customers and remain unprofitable, is unviable. However, one must remember that Infibeam was profitable last year.
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http://yourstory.com/2016/03/infibeam-ipo-reaction/

In case you missed the IPO news:

Infibeam IPO not for faint-
hearted
http://wap.business-standard.com/ar...ipo-not-for-faint-hearted-116031700846_1.html

Infibeam IPO to hit market today; 10 things you should know
http://www.financialexpress.com/art...s-on-monday-10-things-you-should-know/227544/
 
Flipkart claims to have over 75 million registered users.
India’s largest e-commerce marketplace Flipkart, says it has crossed the 75 million registered users milestone on its platform, with growth being led by users coming from tier-II and tier-III towns.
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http://wap.business-standard.com/ar...-million-registered-users-116033000589_1.html
Users from T2 and T3 towns is great and all but I bet everyone's worry is if they will be able to handle their customer services properly and further scale their operations.
 
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