Delhi, 27 September 2014
the middle of this year, Noida-based website developer Manusis
Technologies worked with about 50 clients a month. The number,
the company says, has jumped tenfold since.
Two big deals in July changed the landscape for the nation's
online retail industry, while also offering more business to providers
of support services ranging from website development and payment
services to logistics.
Flipkart in late July said it raised $1 billion in fresh funding,
valuing India's top e-commerce company at $7 billion. A day after,
Amazon, the global No.1, pledged $2 billion of investment in India.
While these announcements reiterated the faith global investors
have on ecommerce in India, they also led to a rush of investors
and entrepreneurs to get a piece of the fastgrowing online retail
"We have seen a tremendous increase in the orders coming
from the e-commerce industry," said Rajiv Kumar, founder
of Manusis Technologies. "Today we are working on 500 clients
every month and this has happened mostly after July and August."
The company has since July doubled staff count to 50 to meet
new demand, and has rented additional office space.
A bulk of the new entrants into the e-commerce space is small
entrepreneurs. One of them, Pooja Parikh, who launched her online
jewellery business Azira jewels three months ago, says she wanted
to do something of her own. "After the e-commerce giants
raised such huge amounts of money, I got a boost and I took the
Online retail is still a tiny spot in India's retail market of
about $500 billion a year, but is growing at a quick pace. A study
by retail consultancy Technopak predicts India's e-tailing market
will reach $32 billion by 2020 from $2.3 billion in 2014.
People want to sell all kinds of stuff online, says Ramesh Khemka,
founder of Mumbaibased website developer Digi Shop. "Starting
from plants to wall stickers to lamps, everything has buyers and
seller in the virtual world." Digi Shop gets about 70 queries
every month. Murali K of Eworld, a Chennai website developer,
says he too has seen a jump in demand since July.
Ethnic Indian clothes and casual wear are favourite products
but unusual products- such as pets - too are being offered online.
Payment gateway, PayU saw the number of its clients swelling
30% post-July to 11,500-odd merchants now. "Online buyers
are increasing in numbers, who then want to buy more online which
in turn leads to increased sellers," said Nitin Gupta, chief
executive of PayU India.
Delhivery, which provides logistics services to the e-commerce
industry, agrees. "Our clients have doubled since July of
the previous year. And the queries for new business have doubled
as compared to January this year," said co-founder Sahil
Barua. The Gurgaonbased company recently raised $35 million to
expand its network, fulfilment space and technology portfolio.
Times Internet, part of The Times Group which publishes The Economic
Times, is an investor in Delhivery.
Domain name registration is another area that has seen increased
activity in recent times. BigRock, a company which helps businesses
register their websites, however only partly credits the e-commerce
sector for this. "While we have seen 10-15% growth in domain
name registrations in July-August as compared to January-February
this year, it would be difficult to attribute the growth entirely
to the Flipkart and Amazon announcements," said Shashank
Mehrotra, business head at BigRock.
Rajiv Sodhi, managing director and vice president of the local
unit of Internet domain registrar and Web-hosting company GoDaddy,
says ,"We only expect this to grow as a new generation of
startups, entrepreneurs and e-commerce players build their businesses
With the huge growth that ecommerce has witnessed in recent
times, analysts like Devangshu Dutta, chief executive of consultancy
firm Third Eyesight, say there is scope for more players to come
But some also warn about the risks the space is fraught with,
as only a few may have chances of making it big. They also see
consolidation in the sector going forward.
(Published in The