9 Jul 2013

Rising Investments in Asian eCommerce markets: Especially in India

Since year 2010, about $6.9B has been invested in Asian eCommerce organizations by many investors. While financing remains hot, exit valuations remain lackluster.

The rising trends for eCommerce in countries around the globe have made lives of people absolutely trouble-free and effortless, minimizing each and every single aspect of life to just a single click of the mouse button. The E-commerce market across globe and especially in Asia has witnessed a number of rise and falls through the course of recent years. But the question that still remains hidden behind the shroud of mystery is that “Does investing in the E-commerce websites in Asia a good choice in terms of return on investments?”. Let us take a closer look into the statistics and figures so that we have a clearer idea of the current positioning of E-commerce Websites of Asia on the global graph.

Asia at a Glance

The Asian eCommerce industry is gaining financially increase, exit activity also growing but valuations currently mostly low. Since year 2010, Asian eCommerce companies have attracted $6.9B across 383 deals from risky capital investors. India and China, not much surprisingly, have been the largest markets for this activity. While exit activity has also grown, exit valuations have been very less.

However, we can expect the unexpected when it comes to the E-commerce platform. We can forecasts that Asia will be home to about half of the world’s population by 2020 and 1/3 of the world’s consumer, it is a bit natural to expect that eCommerce activity to the region is on a tear. And it is. . But taking into account the current statistics, the Asia Ecommerce websites do not qualify as a bright choice for good return on investment.

Current eCommerce Market in India

In contrast to the Ecommerce investment environment in the rest of the Asia, India seems to be running high on colors of success. In India about 150 eCommerce deals since 2010 with 25 deals coming in 2013 already. Well-grown India-based companies include Amazon competitor Flipkart and eBay-supported Snapdeal. India has become a centre of attraction for major investors from around the globe, in lieu of positive return on investment in the Ecommerce ventures.

Best examples of Ecommerce websites in India with high-pitched funding are Flipkart.com and Snapdeal.com. Taking the first position is Flipkart.com that is giving a tough competition to the international player in Ecommerce field – Amazon.com. Next in like comes Snapdeal.com that enjoys a generous funding of $50 Million from the internationally famous E-Bay firm. The extent of success of Snapdeal.com can be judged by its recent acquiring of a small rival brand few months ago.

Conclusion

After seeing much interesting figures we can finally conclude that return on investments on Ecommerce websites in India put much a favorable figure, owing to such a high activity rate established in the country. High return on investments can be predicted in India, as indicated by this status reports and statistics. If the current growth trends in India sustain for a more few years, it is a high probability that India might soon become the best platform to get very huge investments for Ecommerce websites.

Author: Harshal Shah

Harshal Shah is CEO & Founder of Xhtmljunkies, Located in Gujarat, India, XHTML Junkies is one of the best companies that offer unique eCommerce solutions by the virtue of its dedicated professionals. Our professionals are extremely proficient in offering development services pertaining to eCommerce. You can find Harshal on Google+ and Twitter.