The company’s EBITDA stood at 165 crore in the first half of FY 2014. The MukeshAmbani behemoth, Reliance Industries, also runs a closed b2b e-commerce portal for businesses wanting to purchase Polyester and other products produced by the group.
The Indian e-commerce market continues to grow at a fast pace. It was worth $2.5 billion in 2009 and increased by over 450% to $14 billion in 2012. Of this, online retailing comprises a comparatively small percentage of about 12.5%.
However, it’s safe to assume that this figure will grow exponentially over the coming years. India’s online shoppers are growing too. The online shopping community shows a staggering CAGR (Compounded Annual Growth rate) of 30% compared to the global rate of 8-10%.
There are 75-100 Indian players in the highly lucrative e-commerce segment here. Most of them are start-ups founded by ambitious youth. The majority of these companies have received the backing of top dollar venture capitalists and private equity firms.
Along with these local start-ups, global giants like eBay and Amazon are a part of the growing industry too. While Amazon entered the Indian online marketplace segment just last JuneeBay entered India almost a decade ago with its buyout of bazee.com.
Compared with organised retail, which is restricted to metros and big cities and has a penetration of only 7-10%, the opportunity offered by e-commerce is huge as it allows companies to ship most products anywhere in the country.
The country's Internet user base is expected to almost treble to 300 million in about two years and this would result in new users and further growth for companies in the e-commerce segment.