What do Flipkart.com,
Snapdeal.com and
Letsbuy.com have in common? They all are India-based
e-Commerce start-ups and have been started by young entrepreneurs. Also, in just
a short span of time, they have carved a niche for themselves. And their
initial successes have prompted many web observers to even compare them
with today's tech giants like Google, Amazon and Groupon, who had a similar
beginning—in small, makeshift garages.
Their successes also have a rub-off effect on other web entrepreneurs
who, armed with their promising ideas and backed by VC or seed funding,
promise to take India's online success to further new heights à la Silicon Valley.
According to Caris and Co, a boutique investment bank, online purchases are
expected to rise to $5 bn in 2012 from a mere $1.4 bn in 2010. And with
the Internet users expected to rise from the current 120 million to 200 million
by 2015, no wonder more venture capitalists and angel investors are
turning their focus on Indian web start-ups like ixigo.com and redbus.in.
As more and more young populace embrace new technologies like e- and
m-commerce, start-ups are exploring new ideas and services to cater to the
unmet needs of the potential target audiences. For example, Snapdeal.com offers
daily discount coupons to registered members. "Internet commerce isn't just
seeing growth in big urban hubs like Delhi and Mumbai, but also in second-
and third-tier cities where traditional retailers don't have a major
presence", says Kanwaljit Singh, Managing
Director of Helion Venture Partners. He adds, "If I live in a small city and want
a book that isn't in the top 100, there's no bookstore that sells it, but
websites like Flipkart do." This is what
makes them a clear winner. |
