2020 © Benori Knowledge. All Rights Reserved 1
India E-commerce
Market 2019
PREMIUM
2020 © Benori Knowledge. All Rights Reserved
Contents
▪ Executive Summary
▪ Industry Definition and Coverage
▪ Industry Overview
▪ Market Evolution
▪ Business Model
▪ Industry Size, Performance and Growth Outlook
▪ Industry Drivers and Key Challenges
▪ Industry Drivers
▪ Key Challenges
▪ Impact of Disruptive Technologies
▪ Developments and Trends
▪ M&As, Partnerships & Alliances
▪ PE Deals
▪ Market Trends
▪ Competitive Analysis
▪ Player Landscape
▪ Player Profiles
▪ Flipkart Online Services Pvt Ltd
▪ Amazon Seller Services Pvt. Ltd
▪ One97 Communications Limited
▪ Snapdeal Private Limited
▪ Bundl Technologies Pvt Ltd
2020 © Benori Knowledge. All Rights Reserved
Executive Summary
2020 © Benori Knowledge. All Rights Reserved 4
Executive Summary
43.0 53.0
106.0
2018 2019-E 2022-F
India E-commerce Market, US$ B
604.2 679.1904.0
2018 2019-E 2022-F
India Internet Subscribers, Million
524.91218.8
1912.7
Jan-18 Jan-19 Jan-20
UPI Transactions, Million
The Indian e-commerce industry is growing exponentially due to increasing
internet subscribers, rising digital transactions (UPI transactions, mobile wallet
and net banking transactions) and growing government support.
In 2018, the e-commerce market in India was US$ 43 B and is expected to be a
US$ 53 B industry in 2019. Further, the market is expected to cross US$ 100 B
by 2022 at a CAGR of 26% during 2019-2022. Growing per capita income coupled
with rising internet penetration in tier-II and tier-III cities in India are also
driving the growth of the industry.
Internet subscribers in India are expected to increase from 604.2 million (in
2018) to 904 million subscribers (in 2022). In addition, India is adding
approximately 10 million daily active internet subscribers each month, which is
the highest rate of internet penetration in the globe.
Further, online shoppers in India are expected to reach 220 million by 2025 as
compared to 117 million in 2018.
Innovation in payments industry due to emerging technologies such as AI,
blockchain, IoT and real-time payment, along with growing government focus
towards building a cashless economy (leveraging improved telecom and
payment infrastructure) is driving the adoption of digital instruments by
merchants and proliferation of UPI.
Sources: eMarketer, NASSCOM, TRAI, NPCI, Benori
2020 © Benori Knowledge. All Rights Reserved 5
Executive Summary
Technology Focused Acquisitions
Focus: Conversational shopping experience
Strengthen product selection,
recommendation and pricing capabilities
Focus: AI and IoT based tech infrastructure for
managing hotels and other assets
Focus: To develop wearables for its in-house
brands and enhance customer engagement
With growing internet penetration in rural areas across the country, the number of online
shoppers is also increasing rapidly. E-commerce players witnessed strong growth in their
consumer base belonging to tier-II and tier-III cities due to slow deployment of physical organised
retail, availability of better discount and offers, wider product range and multiple payment
options such as ‘no cost EMI’.
In 2018, the total number of online shoppers stood at 117 million, of which 61 million were from
tier-I cities while, 56 million shoppers belonged to tier-II and tier-III cities.
Major e-commerce players such as Amazon recorded that more than 80% of its customers, during
festive season sale are from tier-II and tier-III cities. Similarly, with growing demand, Swiggy
expanded its presence to 16 new tier-II and tier-III cities to capture the consumer demand, as
the company noticed increase in their app downloads in these cities.
India E-commerce Industry Goes Rural Technological Advancement
To gain competitive advantage, major e-commerce
players are either acquiring or partnering with tech
firms to enhance consumer experience and
strengthen their portfolio.
E-commerce giants such as Flipkart, Myntra, Oyo,
Snapdeal, Amazon are investing heavily on disruptive
technologies like artificial Intelligence, IoT, AR/VR,
automation and blockchain to enhance consumer
shopping experience and provide recommendations
based on their search pattern.
Sources: Press Releases, Benori
2020 © Benori Knowledge. All Rights Reserved
Industry Definition, Coverage and Research Methodology
2020 © Benori Knowledge. All Rights Reserved 7
Industry Definition, Coverage and Research Methodology
The e-commerce market comprises sale of physical goods or services via digital platforms to end users (B2C). Consumers are required to purchase goods or
services via connected devices such as smartphones, tablets, laptops or desktops, among several other digital mediums. On the other hand, sellers must have a
secure website (or a mobile app) well-equipped to sell their products online.
As per United Nations Industrial Development Organization (UNIDO), “e-commerce means buying and selling of goods and services including products over digital
and electronic networks”.
Scope of the study is limited to:
Sale of physical goods or services via a digital channel to a
private end user (B2C)
Purchases via desktop computer (including notebooks) and
purchases via mobile devices (e.g. smartphones)
Market Scope
B2B markets (e.g. Alibaba)
Resale of used goods (re-commerce)
Sales between customer to customer (C2C) (e.g. OLX)
Limitation
Research Methodology: All the quantitative and qualitative information given in the study is based on secondary research. Benori has referred to several studies
published by different associations and government press releases and annual reports. For forecasting, Benori has used multiple forecasting techniques to
forecast market numbers and has also considered various factors influencing the market growth.
Note: All the numbers given in the study are rounded off to one digit after decimal.
2020 © Benori Knowledge. All Rights Reserved
Industry Overview
• Market Evolution
• Business Model
• Industry Size, Performance and Growth Outlook
2020 © Benori Knowledge. All Rights Reserved 9
Market Evolution
The security, convenience and user experience has enhanced since the inception of Rediff.com. The industry continues to grow with
technology advancement and thousands of businesses entering the online market each year.
India Goes Online
Rediff added online
shopping to its portal.
Later, Indiatimes shopping
and Baazee.com entered
India’s e-commerce market.
IRCTC introduced their e-
commerce platform to book
tickets in one go with easy
online payment options.
Later in 2005, MakeMyTrip
started its operation with
online flight tickets and
hotel and holiday package
bookings. Yatra also started
its operation in 2006.
E-commerce Penetration
In 2007, Bookmyshow and
Flipkart entered India’s e-
commerce market. Customised
facilities such as ‘choose your
preferred seat’ and deep
discount offers attracted
customers that majorly
belonged to tier-I cities, to go
online.
In 2009, Myntra entered the
market and started offering
personalised products online.
The company extended its
product line to retail fashion
and lifestyle category. Mydala
and Snapdeal started in 2009
and 2010 respectively with
their daily deal platforms. In
2011, Snapdeal started using
marketplace model for their e-
commerce operations.
Amazon in India
In 2012, Jabong entered
with fashion and lifestyle
e-commerce portal. It
became the most visited
website in 2013.
In 2013, Amazon launched
its website and app in
India and started its
operations by selling
electronic products online.
Later, the company also
entered into fashion
apparel, beauty, home
essentials and healthcare
categories.
Online Grocery
In 2014, Dunzo and Swiggy
started their operations in
India. The next year (2015)
witnessed several start-ups
entering the online food
ordering e-commerce market
in India, with Zomato and
Food Panda being the major
ones amongst them.
In 2017, Ola, a transportation
network company, acquired
FoodPanda to enter the online
food delivery business in
India. Similarly, Uber
launched ‘UberEats’, an
online food delivery platform
under marketplace model.
In 2018, Amazon started its
food retail business in India.
1999-
2006
2007-
2010
2011-
2013
2014-
2018What
Next
With growing funding in
India’s e-commerce industry
coupled with rising
government support, the
e-commerce industry in
India is expected to evolve
at the fastest pace globally.
Companies, are also using
social media platform for
lead generation, as the
number of social media
users is also growing
exponentially.
The Future
2020 © Benori Knowledge. All Rights Reserved 10
Business Model
E-commerce market in India primarily operates through three business models, namely marketplace, inventory–based and hybrid model. Most of the major e-
commerce players at present, are operating through the marketplace model, while companies such as ShoppersStop and Ikea are operating via inventory-based
model. Although, Bigbasket initially operated through inventory model, the company switched to hybrid business model due to the rise in competition and
consumer base.
In the Indian e-commerce industry, 100% FDI under automatic route is permitted for platforms operating via marketplace business model.
However, FDI in inventory-based model of e-commerce is strictly prohibited.
E-Tailing Business Model
Marketplace Model Inventory Based Model Hybrid Model
A marketplace is a platform provided by a third party, enabling buyers and sellers to conduct commerce. The company only acts as a mediator and does not own the products/services provided.
In inventory-based model, goods andservices are owned by e-commerceentity and are sold to the consumersdirectly.
Hybrid model is a combination ofboth marketplace and inventory-based business model. The entitiespartially own and partially sourcetheir products from third partysellers.
Defi
nit
ion
Exam
ple
2020 © Benori Knowledge. All Rights Reserved 11
Industry Size, Performance and Growth OutlookGlobal vs Indian e-commerce market
20.3 21.0
28.5
2.9 3.55.7
2018 2019-E 2022-F
Retail
E-Commerce
Global Retail & E-commerce Market, 2018-2022 (US$ T)
Sources: eMarketer, NASSCOM, Benori
Globally, e-commerce market witnessed a strong growth in 2018 and is
further expected to grow exponentially during the forecast period. In 2018,
e-commerce market contributed over 14% in the total retail market and is
expected to contribute over 22% by 2022.
Mobile phones, attributing to over 60% market share continued to be the
dominant purchase channel in 2018. The segment contributed around US$
1.8 T to the global e-commerce market in the same year.
In 2018, Asia-Pacific was the largest revenue contributor to the global e-
commerce market and is further expected to be the leading contributor led
by China, Japan, South Korea and India during the forecast period.
Note: E-Expected; F-Forecast
950.0 1,062.51,400.0
43.0 53.0 106.0
2018 2019-E 2022-F
Retail
E-Commerce
India Retail & E-commerce Market, 2018-2022 (US$ B)
Retail is India’s largest industry that contributes over 10% of the country’s
GDP and 8% of the total employment. In 2019, retail sector of the country
is expected to cross US$ 1.0 T and is further expected to grow at 9.6%
CAGR during 2019-2022.
India is one of the fastest growing e-commerce market globally and is
expected to grow at 26% CAGR during 2019-2022. By 2022, e-commerce
market is expected to cross US$ 106 B (as compared to US$ 43 B in 2018)
on account of growing government focus towards improving digital
infrastructure via multiple initiatives such as Digital India.
Online grocery and pharmacy are emerging as new areas in focus in the
e-commerce arena in India due to ticket size and repeat purchase.
Sources: NASSCOM, Invest India, FICCI, Benori Note: E-Expected; F-Forecast
Global E-commerce Market Scenario India E-commerce Market Scenario
6.0%
17.3%
CAGR
2019-22
9.6%
26.0%
CAGR
2019-22
By 2021, e-commerce is expected to become one of the largest retail channels globally. E-commerce players continued acquisitions and
investments in disruptive technologies such as Artificial Intelligence, IoT and analytics solutions.
2020 © Benori Knowledge. All Rights Reserved 12
Industry Size, Performance and Growth Outlook
21.0 27.062.019.0 22.0
34.03.0 4.0
10.0
2018 2019-E 2022-F
E-commerce Market, By Type (US$ B)
eTail eTravel Others*
12.0 15.032.45.0 7.0
16.94.0 5.0
12.8
2018 2019-E 2022-F
eTail Market, By Type (US$ B)
Electronics Fashion Others**
7.8 8.7 12.84.4 4.9
7.12.4 3.0
5.8
2.3 2.7
4.1
1.1 1.5
2.5
1.1 1.2
1.7
2018 2019-E 2022-F
eTravel Market, By Type (US$ B)
Domestic Air Rail International Air
Hotel Others*** Bus
Source: eMarketer, NASSCOM, Benori Note: E-Expected; F-Forecast
Rising smartphone and
internet penetration
coupled with declining
data costs
Proliferation of digital
options such as m-wallet,
Unified Payment Interface
(UPI) and mobile banking
Enhanced logistics
infrastructure with focus
on last-mile delivery
Increasing number of
online shoppers from tier-
II and tier-III cities
Key Takeaways
Online shoppers from tier-I cities will continue to dominate the overall online
consumer base in India. However, online shoppers in tier-II and tier-III cities
are also rising exponentially with growing awareness.
In 2018, the total number of online shoppers stood at 117 million, in which
61 million were from tier-I cities while, 56 million shoppers belonged to
tier-II and tier-III cities.
Online grocery and e-pharmacy have emerged as the must-capture segment
for e-commerce players due to ticket size and high repeat purchase rate.
Indian e-commerce market outlook
*Financial Services, Consumer Services And Digital Content
**Online grocery and ePharma ***Online cab booking and others
Key Drivers of Growth
Flow of credit to consumers, sellers and micro enterprises and growing focus towards the enhancement of payment solutions and gaining
trust of the consumers are driving the e-commerce market in India.
2020 © Benori Knowledge. All Rights Reserved 13
Industry Size, Performance and Growth OutlookEmerging e-commerce segments
Online Grocery - The fastest growing eTail segment
Grocery contributed to around 60% of India’s retail market in 2018. With
growing online penetration and changing lifestyles, online grocery
became the must-capture segment for e-commerce players owing to its
larger ticket size and repeated frequent purchase rate.
According to NASSCOM, online grocery market in India stood at US$ 1 B in
2017 and is expected to reach US$ 5 B by 2020. On an average ~80% online
orders are worth about US$ 20 B.
Alongside already established players such as Bigbasket and Grofers;
leading e-commerce players such as Flipkart and Amazon also entered the
online grocery market under their ‘Supermart’ and ‘Prime Now’ services,
respectively. Moreover, the market is expected to be driven by technological
advancements and faster delivery services in the coming years.
With growing online grocery market, the number of startup companies,
majorly in tier-II and tier-III cities are also growing. Few of the examples
are: Flipfresh (Hubballi), ShopitDaily (Indore), PinckCityKirana (Jaipur),
GharBaitheBazar (Lucknow) and Kada (Vishakhapatnam), MeraKisan
(Pune), Ananda Grocery (Coimbatore).
From little to no existence in 2010, startups in online grocery market have
risen in the recent years, accounting for 40% of the total e-commerce
funding in India. Until October 2019, online grocery startup companies
received total funding amounted to US$ 665.7 M.
E-PharmaGrowing internet penetration, rising smartphone ownership, growing
awareness related to online shopping and high discount offers are driving
the e-pharma market across the country.
In 2018, the e-pharma market was around US$ 350 M (approximately 2% of
the total pharma retail market in India), and is further expected to grow at
a CAGR of over 40% during 2019-2022.
1MG, NetMeds, Medlife, PharmEasy, LifCare and Practo are the leading
e-pharma companies that handle around 25,000-30,000 orders per day.
Major Indian E-Pharma Companies
Consultation Diagnostics Pharmaceuticals Hospitals
Source: News Articles, Benori
With growing competition, companies are investing heavily on disruptive technologies to gain advantage. For instance, 1MG is working on
artificial intelligence to create ‘doctor assistant’ that would make a doctor more productive.
2020 © Benori Knowledge. All Rights Reserved
Industry Drivers and Key Challenges
• Industry Drivers
• Key Challenges
2020 © Benori Knowledge. All Rights Reserved 15
Industry Drivers
Attractive discounts and offers and the ‘no
cost EMI’ option offered by multiple e-
commerce players are attracting consumers to
purchase required product/services via online
platforms.
Online shopping channels are also enabling
their users to select from multiple options a
single platform. In addition, they also provide
the facility to order any product from any
region of the country or the world.
With growing competition, companies are
integrating artificial Intelligence for offering
personalised solutions to customers based on
their search results over the app/website.
As awareness around the internet is
increasing, more and more people (sellers,
buyers and investors) are being drawn towards
e-commerce.
India, a country with the second largest
internet users after China, had over 604
million internet users in 2018. The country is
further expected to cross 904 million internet
users by 2022.
Increase in multi-lingual content and customer
support across the internet ecosystem. As 75%
Indians speak at least one of the numerous
regional languages in the country, e-commerce
players have started focusing on targeting tier-
II, tier-III and other untapped markets.
The number of mobile internet users is
expected to reach 37.4% of the total
population by 2021.
With growing usage of mobile internet across
the country, online retailers are expanding
their footprint in tier-II and tier-III cities. By
2018, tier-II cities in India had over 50 million
online shoppers. Additionally, with rise in
investments in logistics and warehouses,
online retailers are now delivering to 12,500-
19,200 pin codes out of around 100,000 pin
codes in the country.
By 2020, smartphone penetration is expected
to reach 50% in India.
Also, according to Ericsson, India’s data usage
per smartphone reached 9.8 GB/month, the
highest in the world, and is further expected
to be double to 18 GB by 2024.
Improved logistics infrastructure with a focus on last-mile delivery along with increasing attention towards strengthening the technology
infrastructure is boosting the e-commerce industry in India.
Discounts, Offers and Depth
in Product LineInternet Subscribers Mobile Commerce
2020 © Benori Knowledge. All Rights Reserved 16
Industry Drivers
Rising investments in the e-commerce industry
in India are supporting the sector’s growth. For
instance:
In December 2019, Licious, a Bangalore-
based e-commerce platform selling
fresh meat and seafood, raised funding
of US$ 30 M by Singapore-based Vertex
Growth Fund to expand its footprint in
India. Currently the company is
processing more than 17,000 orders
every day.
In October 2019, Amazon Inc. infused
US$ 631 M into its Indian subsidiaries,
including Amazon Seller Services (~US$
480 M), Amazon Pay (~US$ 127 M) and
Amazon Retail (~US$ 24 M).
Convenient payment models coupled with
attractive discount offers by e-commerce
players have compelled the usage of
credit/debit cards, m-wallets and UPI
transactions.
In December 2018, India had 958.2 million
debit card and 44.2 million active credit card
users.
On the other hand, transactions through
mobile wallets increased by 3.4% month-on-
month to 347.1 million transactions in July
2019 as compared to 334.7 million in June
2019.
In addition, number of transactions though UPI
increased exponentially from 524.9 million in
January 2018 to 1,218.8 million in January
2019.
The Government of India is supporting growth
in the e-commerce industry with multiple
initiatives such as ‘Digital India’, ‘Make In
India’ and ‘Start-Up India’.
The government has allocated US$ 1500 M for
the expansion of telecom infrastructure, which
is directly linked to digital India initiatives.
In February 2019, the Government of India
released the draft National e-commerce
policy. Further, in June 2019, the government
further announced to introduce national e-
commerce policy within next 12 months.
Under “Internet Saathi” project, Google and
Tata Trust have collaborated to boost internet
penetration among rural women in India. Till
July 2019, the project has benefited over 26
million women across 2.6 lakh villages and
20 states in India.
Due to the growing e-commerce market, companies such as P&G, Ikea and Amway are exploring the option of entering the online market
for their next phase of growth.
Growing Investment Seamless Transactions Government Initiatives
2020 © Benori Knowledge. All Rights Reserved 17
Key Challenges
In order to reduce the concerns around online
transaction security, major e-commerce
players started providing COD facility to their
customers. While placing an order, shoppers
can skip paying online (through debit/credit
card or net banking) and choose to pay in
cash when the product arrives at their
doorstep. Although cases of customers
refusing to pay at the time of delivery
resulted in heavy losses that incurred in
product transit and sales.
Receiving payment in cash (via COD) makes
the process laborious, risky and more
expensive for companies as their capital
requirements and collections increased.
Higher return ratio for goods sold online also
poses an expensive challenge for e-commerce
companies. The return percentage of COD
orders is also high.
Data security is a major concern for all the
players operating in the e-commerce industry
as they deal with huge volumes of customer
information which is shared with external
parties such as sellers and logistics providers.
These external players can misuse the
consumer data provided.
Majority of buyers in India prefer to touch and
feel the product before buying to be assured
of its looks and quality, which they can not
validate over an online platform until they
buy the product and it arrives at their
doorstep. This is a major challenge for e-
commerce players who sell products such as
apparels, jewellery, cosmetics and
accessories. However, the above constraints
do not affect online booking and ticketing
businesses in India.
Lack of awareness majorly in tier-III cities, inadequate plastic money holder and the concerns around online transactions are the major
challenges for the e-commerce industry in India.
Cash on Delivery (COD) Mode
and High Logistics CostData Security Touch & Feel Constraint
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Impact of Disruptive Technologies
2020 © Benori Knowledge. All Rights Reserved 19
Impact of Disruptive Technologies (1/2)With growing competition in the e-commerce industry in India, giants in the sector are focusing on integrating disruptive technologies such as Artificial
Intelligence (AI) (which also includes machine learning, deep learning and natural language processing), augmented reality and virtual reality, Internet of
Things (IoT), industrial automation and vernacular technology. The integration of these technologies is aimed at gaining competitive advantage in
acquiring new customers, understanding their purchasing pattern and reducing the operational cost.
In addition, companies are investing on drone-based delivery services, blockchain and edge computing, that would help in mitigating overall logistics cost
and security concerns among the consumers.
Artificial Intelligence
AI is an essential tool for e-commerce players to
differentiate themselves in the marketplace.
With growing online shoppers and rising data
traffic, companies are integrating AI (including
machine learning, deep learning and natural
language processing) for multiple use cases such
as product recommendation and planning
based on search patterns, customer loyalty,
customer retention, virtual assistance, price
optimisation and visual search.
Flipkart is using an AI-based solution to
understand and analyse upsell, buying
behaviour, buying capacity and preferences;
give recommendations; and lower the return rate
of products. Flipkart is also using conversational
chatbots to solve the queries of their customers
in real time. In addition, Flipkart has also done
some technology-focused acquisitions such as
Liv.ai and Upstream Commerce to accelerate and
enhance shopping experience of its customers.
The acquisition of Liv.ai is focused on providing
speech recognition ‘voice-based’ services, while
acquisition of Upstream is focused on building
advanced and intelligent solutions for
strengthening their product selection and price
optimisation process.
Current Use Case: Future Use Case: Example:
These use cases will play a vital role for e-
commerce players in optimising their operational
costs and enhancing their customer experience
with growing online shoppers.
BeaconsMixed Reality
Smart LabelsDigital Payments
E-commerce players rely on AI to predict traffic, detect and mitigate bots and consumption traffic during festive season sale. AI
chatbots/virtual agents are expected to replace around 85% of customer interactions by 2020.
2020 © Benori Knowledge. All Rights Reserved 20
Impact of Disruptive Technologies (2/2)
AR/VR provides a new way to experience products in a digital environment.
With changing lifestyle and growing online spends, e-commerce players are
also integrating AR/VR technology within their platforms to enhance
consumer experience. Moreover, AR also provides customisation facilities to
online consumers based on their style, size, colour and other preferences.
Example: LensKart, an eyewear e-commerce platform leverages this
immersive technology to enable its users to virtually try out frames through
their 3D feature. Byju’s, an online ed-tech company is another example that
uses VR-based technology to provide an experimental learning experience to
their customers.
Robotic automation helps e-commerce players automate and eliminate tedious
tasks, optimise processes and reduce man hour work. Supply chain
management, inventory management, product classification and delivery
management are the major use cases for Robotic Automation.
Example: To scale up processing of customer shipments, Flipkart introduced
robot-based sortation technology, Automated Guided Vehicles (AGVs) in its
Bengaluru-based delivery hub. The set-up involves over 100 self-guided bots
that automatically sort packages to the right customer’s pin-code by
identifying encoded information on each package.
Growing customer data traffic along with rising focus towards providing real-
time solutions to the customer is driving companies to enhance their IoT
infrastructure. Real-time surveillance, product tracking and optimisation
are the major use cases of IoT. On the other hand, with increasing number
of edge devices, edge computing is becoming a prominent use case of IoT
for e-commerce players.
Example: Oyo has acquired AblePlus, a Mumbai-based IoT solution provider,
to create an AI and IoT-based tech infrastructure for managing hotels and
assets.
Blockchain, drone-based delivery services, edge computing and vernacular
technology are the other disruptive technologies where e-commerce players
are investing heavily.
Example: Zomato, an online food delivery company has acquired TechEagle, a
drone startup to deliver food in India. Similarly, Amazon has also invested in
drone technology that can be used for delivering goods in India.
In addition, Amazon has also invested in vernacular tech and launched its
Hindi mobile app and website to tap into Hindi speaking customers majorly
from tier-III cities and villages.
Augmented & Virtual Reality (AR/VR) Robotic Automation
Internet of Things (IoT) Other Disruptive Technologies
E-commerce players have been into aggressive competition and are eyeing to capture significant share of the consumer spending by
investing in disruptive technologies and expanding their business operations majorly in tier-II and tier-III cities.
2020 © Benori Knowledge. All Rights Reserved
Developments and Trends• M&As, Partnerships & Alliances
• PE Deals
• Market Trends
2020 © Benori Knowledge. All Rights Reserved 22
M&As, Partnerships & AlliancesList of major M&A deals in 2019
Swiggy
acquired Kint.io
Value: Undisclosed
Jan-
19
Feb-
19
Mar-
19
May
-19
Jul-
19
Oct-
19
Nov-
19
Paytm
acquired NightStay
Value: US$ 20.0 M
Oyo
acquired Innov8
Value: US$ 31.8 M
Medlife
acquired Myra
Value: Undisclosed
Info Edge acquired
Happily Unmarried
Marketing
Value US$ 0.8 M
Bennett, Coleman & Co.
acquired Grofers India
Value: US$ 20.1 M
Flipkart acquired
EasyReward Software
Value: US$ 4.0 M
BrainBees Solutions –
FirstCry acquired Oi
Playschool
Value: Undisclosed
Qoo10 acquired
ShopClues
Value: US$ 70-100 M
Ebix acquired
Yatra.com.
Value: US$ 337.8 M
India has the highest number of unicorn startups after the US and China. In addition, the list is expected to add more than 10 members by
2020. Some of them are Bigbasket, MobikWik and Practo.
Source: Grant Thornton, News Articles, Company Website, Press releases, Benori
2020 © Benori Knowledge. All Rights Reserved 23
PE Deals
May
-19
Oct-
19
Nov-
19
TravelTriangle.com
Paytm
13
150 PolicyBazaarTencent Holdings Ltd
T Rowe Price, Alibaba, Ant
Financial and SoftBank Vision
Fund and Discovery Capital
KB Global Platform Fund, The
Fundamentum partnership
Fund I, RB Investments, SAIF
Partners, Bessemer Venture
Partners
11.2
45 1000
3.2 BeYouPlusvyCap Ventures, Madison
Capital and Singapore Angel
Network
SAIF Partners, Sequoia Capital
and Steadview Capital2.1 Urban Ladder
Angel investors NA goStops
200
150
105
Bewakoof.comInvestcorp
Lightbox Ventures,
Google, 3L Capital and
STIC Investment & STIC
Ventures
Dunzo
SoftBank Group Corp,
KTB Ventures, Tiger
Global and Sequoia
Capital
Grofers India
Mirae Asset Financial
Group, CDC Group and
Alibaba GroupBigBasket.com
Delivery Hero and
Glade Brook Capita Zomato
List of major PE deals in 2019
Investor | Investee
Bubble size represents PE deal size in US$ M
Source: Grant Thornton, News Articles, Company Website, Press releases, Benori
India has the highest number of unicorn startups after the US and China. In addition, the list is expected to add more than 10 members by
2020. Some of them are Bigbasket, MobikWik and Practo.
2020 © Benori Knowledge. All Rights Reserved 24
Market Trends
02Festive Season Sale ▪ E-commerce players witnessed major boom in sales value and volume during the festive season on their websites
and mobile applications. Flipkart and Amazon India along with other e-commerce giants are investing heavily on
advertisements to promote their festive season offers and hire new temporary employees to fulfill the demand
surge during the festive seasons.
▪ Multiple payment options such as EMI, UPI and mobile wallet drove 60% of the overall sales of Flipkart during the
festive seasons in 2018.
03Growing Space for
Niche Players
01Image Search
▪ With growing e-commerce market, niche players such as Nykaa in beauty care, Bigbasket and Grofers in grocery,
Lenskart in eyewear, Pepperfry in furniture retail, Clovia in lingerie and 1mg and Netmeds in selling medicines
online will gain attention from customers across the country to grow their space in their specific market segments.
▪ However, major e-commerce players such as Amazon, Flipkart, Paytm and Snapdeal are focusing towards
expanding their footprint primarily in tier-II and tier-III cities to increase their consumer base and acquire new
customers from such regions across the country.
Subscription business model is getting traction in the e-commerce industry in India. For instance, Amazon launched Amazon Prime in 2016.
Also, Flipkart, Swiggy and Zomato launched Flipkart Plus, Swiggy Super and Zomato Gold respectively in 2018.
▪ With a growing number of listed products on e-commerce marketplaces, e-commerce giants are focusing on
implementing product image search-based services. This would enhance consumer experience while shopping online
and reduce the time taken for searching products.
▪ In addition, Amazon India is working on integrating new search features that will also include images.
2020 © Benori Knowledge. All Rights Reserved
Competitive Analysis• Player Landscape
• Player Profiles• Flipkart Online Services Pvt Ltd
• Amazon Seller Services Pvt. Ltd
• One97 Communications Limited
• Snapdeal Private Limited
• Bundl Technologies Pvt Ltd
2020 © Benori Knowledge. All Rights Reserved 26
Player Landscape
eTravel Others*eTail
According to the survey conducted by PayPal, in India, Facebook, WhatsApp and Facebook Messenger are the most used social media
platforms by the merchants. In addition, social media platforms account for 79% of e-commerce in India.
Source: Company Website, Press Releases, Benori
2020 © Benori Knowledge. All Rights Reserved 27
Company Profile: Flipkart Online Services Pvt Ltd (Flipkart)
Company Name: Flipkart Online Services Pvt Ltd.
Founded In: 2007
Headquartered: Bengaluru, India
Founder: Sachin Bansal and Binny Bansal
Key Executives:
Kalyan Krishnamurthy (CEO)
Emily McNeal (Group CFO)
Website: www.flipkart.com
Registered Users: 100+ M (as of 2018)
Average Sales Per Order: US$ 27.9 (*Festive season – Oct to Nov)
Funding Received: US$ 7.7 B in 22 Rounds (Till 3rd
December 2019)
Major Stakeholder: Walmart (81.3%), Tencent (5.4%), Binny
Bansal (4.2%), Tiger Global (4.8%), Microsoft Corp. (1.5%), Accel (1.4%), Iconiq Capital
(0.98%), Temasek (0.3%) and UBS (0.2%)
Turnover:
2019: US$ 6,269.1 M 2018: US$ 4,710.8 M
Recent Developments: In July 2019, Flipkart Group announced the launch of
Samarth, an initiative to uplift various artists, weavers and
handicrafts in India through e-commerce.
In May 2019, Flipkart Group announced to launch Flipkart
Supermart, an online grocery store with its operations in
Mumbai. It includes products such as FMCG, staples and
dairy products.
M&As/Joint Ventures/Partnerships: In November 2019, Flipkart invested US$ 4 M in
EasyReward, a customer engagement and rewards platform
that offers customer engagement solutions to merchant
sellers transacting on Flipkart’s platforms.
In September 2019, Flipkart Group and the Government of
Jharkhand signed an MoU to launch Samarth in Jharkhand.
The program will provide online business to weavers,
artisans and craftsmen of Jharkhand.
In September 2018, Flipkart Group acquired Upstream
Commerce, an Israel-based company to build advanced data
science-based intelligent solutions and strengthen
selection and pricing capabilities.
Source: Company Website, Press Releases, News Articles
Key Statistics
Company Overview
Flipkart has partnered with Federation of Indian Chambers of Commerce & Industry (FICCI) to launch a series of workshops across India for
MSMEs, which would help in understanding how e-commerce marketplace can help in increasing brand visibility.
2020 © Benori Knowledge. All Rights Reserved 28
Company Profile: Amazon Seller Services Pvt. Ltd (Amazon)
Company Name: Amazon Seller Services Pvt. Ltd.
Founded In/Started Ops in India: 2013
Headquartered: Hyderabad, India
Founder: Jeff Bezos
Key Executives:
Amit Agarwal (Global Senior VP and Country Head)
Raghava Rao (VP Finance & India CFO)
Website: https://www.amazon.in
Registered Users: 150 M (as of 2018)
Average Sales Per Order: US$ 20.6 (*Festive season – Oct to Nov)
Funding Received: NA
Major Stakeholder: NA
Turnover:
2019: US$ 1,118.0 M
2018: US$ 771.2 M
Recent Developments:
In September 2019, Amazon India announced to unveil
long-term sustainable packaging initiatives and its
commitment to eliminate the use of plastics from its
packaging by June 2020.
In August 2019, Amazon India launched Military Veterans
Employment Program dedicated to creating substantial
opportunities for military veterans as well as their spouses
across Amazon’s delivery centres, sort centres and fulfilment
centres in India.
In August 2019, Amazon India launched Amazon Fresh store
with 2-hour delivery facility for select pin-codes in
Bengaluru.
M&As/Joint Ventures/Partnerships:
In April 2019, Amazon India announced an alliance with
Ketto, a crowdfunding platform to introduce a program
‘Amazon Wings’.
Launch of this program will help Amazon sellers to use
Ketto’s platform for initiating fundraisers at a
subsidised fee.
Source: Company Website, Press Releases, News Articles
Key Statistics
Company Overview
Amazon invested US$ 626.6 M in its three-business units in India (Amazon Seller Services, Amazon Pay and Amazon Retail). Amazon Seller
Services received US$ 476.4 M, Amazon Pay received US$ 26.1 M, while Amazon Retail received US$ 24.2 M.
2020 © Benori Knowledge. All Rights Reserved 29
Company Profile: One97 Communications Limited (Paytm)
Company Name: One97 Communications Limited
Founded In: 2010
Headquartered: Noida, India
Founder: Vijay Shekhar Sharma
Key Executives:
Vijay Shekhar Sharma (CEO)
Amit Sinha (COO-Paytm Mall)
Website: https://paytm.com
Registered Users: 350 M (as of 2019)
Average Sales Per Order: US$ 18.4
Funding Received: US$ 2.5 B
Major Stakeholder: Alibaba.com Singapore E-commerce (30.2%),
SB Investment Holdings (21.1%), Alipay Singapore E-commerce (15.9%), SAIF Partners
(18.7%) and Vijay Shekhar Sharma (9.7%)
Turnover:
2019: US$ 477.1 M
2018: US$ 496.4 M
Recent Developments: In December 2019, Paytm Payments Bank announced the
offering of corporate salary account. The account offered
substantial features for both employer and their employees.
In March 2019, Paytm launched Paytm First, a subscription-
based loyalty and reward program for its users. The
customer can use the service by paying an annual fee of US$
10.50 (Rs 750) coupled with an inaugural cashback offer of
US$ 1.40 (Rs 100). The program includes various
subscription and membership offers from Uber Eats, Zomato,
The Man company and OYO among others.
M&As/Joint Ventures/Partnerships: In May 2019, Paytm partnered with Citigroup Inc., a US-
based investment bank and financial services corporation to
provide cashback-driven credit card marketed by Paytm and
underwritten by Citigroup.
In January 2019, Paytm acquired NightStay, a Noida-based
company that offers deals on last-minute hotel bookings
through their mobile app. The acquisition will further help
Paytm to enter the hotel booking business too.
Source: Company Website, Press Releases, News Articles
Key Statistics
Company Overview
On November 2019, Paytm raised US$ 1 B by US asset manager T Rowe Price along with existing investors Ant Financial and SoftBank Vision
Fund.
2020 © Benori Knowledge. All Rights Reserved 30
Company Profile: Snapdeal Private Limited (Snapdeal)
Company Name: Snapdeal Private Limited
Founded In: 2010
Headquartered: New Delhi, India
Founder: Kunal Bahl and Rohit Bansal
Key Executives:
Kunal Bahl (CEO)
Rohit Bansal (COO)
Website: https://www.snapdeal.com
Registered Users: 80+ M (as of 2018)
Average Sales Per Order: US$ 15.6
Funding Received: US$ 1.8 B (July 2019)
Major Stakeholder: Softbank (36.1%), Nexus Venture Partners (11.2%),
eBay Singapore (5.7%), Alibaba (4.4%), Foxconn
(4.4%), Temasek (2.9%)
Turnover:
2019: US$ 13.3 M
2018: US$ 8.2 M
Recent Developments:
Till December 2019, the company added additional 3,500
pin codes to its logistics network. As a result, the company
is now delivering across 26K pin codes across the country.
In November 2019, Snapdeal joined International
Trademark Association (INTA) to support protection of
intellectual property on online marketplaces.
In July 2019, the company announced that it has raised
funding of an undisclosed amount from Anand Piramal, the
Executive Director of Piramal Group.
M&As/Joint Ventures/Partnerships:
In September 2019, Snapdeal partnered with National
Payments Corporation of India’s RuPay to offer discounts to
its credit and debit card users in the festive season sale.
The partnership will enable approximately 600 million
RuPay users to gain 20% discount during checkouts from
Snapdeal’s website.
Source: Company Website, Press Releases, News Articles
Key Statistics
Company Overview
With growing focus towards expanding logistics network, Snapdeal is also gaining traction from non-metro segment, with almost 90% of the
total orders coming from non-metro cities.
2020 © Benori Knowledge. All Rights Reserved 31
Company Profile: Bundl Technologies Pvt Ltd (Swiggy)
Company Name: Bundl Technologies Pvt Ltd (Swiggy)
Founded In: 2014
Headquartered: Bengaluru, India
Founder: Sriharsha Majety and Nandan Reddy
Key Executives:
Vivek Sunder (COO)
Rahul Bothra (CFO)
Website: https://www.swiggy.com
Registered Users: NA
Average Sales Per Order: US$ 4.4
Funding Received: US$ 1.5 B in 10 rounds (December 2018)
Major Stakeholder: NASPERS (39.0%), SAIF Partners (9.2%), Accel
(8.5%) and Norwest Venture (8%)
Turnover:
2019: US$ 161.2 M
2018: US$ 6.4 M
Recent Developments: In Sept 2019, the company launched Swiggy Go, an
additional service for pick-up and drop of personal
packages.
In August 2019, the company launched Swiggy Store, a
personalised service that allows customers to order any
product from any retail store in Gurugram. The company is
anticipated to steadily expand the services in Bengaluru
and Hyderabad.
In June 2019, the company launched “Daily”, a
subscription-based homestyle meal app with zero delivery
fee in Gurugram.
In February 2019, the company invested US$ 4.4 M in
Fingerlix, a ready to cook startup company.
M&As/Joint Ventures/Partnerships: In February 2019, Swiggy acquired a startup that
specialises in applying deep learning and computer vision
techniques for object recognition in videos. The acquisition
of the company is focused on their long-term strategy of
making an AI-driven platform to enhance customer
experience.
In August 2018, the company acquired Scootsy, an on-
demand delivery firm, to expand its delivery network.
Source: Company Website, Press Releases, News Articles
Key Statistics
Company Overview
As of December 2019, with presence in over 500 cities and towns, 140,000 restaurants associated on its platform and 2.1 lakh active
delivery partners, the company is catering 1.4 million food orders daily.
2020 © Benori Knowledge. All Rights Reserved 32
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