Why this can be a make or break Diwali for Flipkart and Snapdeal

As you open your desktop or smartphone to buy those sweets and gifts this Diwali shopping season online, remember it will be a make or break one for some e-commerce players. Several might not exist next Diwali. 

 

The top five Indian online shopping site ranking currently runs like this: Amazon-Flipkart, Snapdeal, Shopclues, Paytm, in that order, followed by a two dozen other smaller ones. It’s the smaller ones which have been deprived of the Series B or C funding that will be prone to high survival risk in the next 12 months. This year alone two players Fashionara, AskmeBazaar and PepperTap which ran huge discounts last Diwali are non-existent. 

 

Grocery e-tailing is expected to see the largest graveyard as more are expected to fall by the side, with lesser ammo provided by investors. The existential question comes about as many of these firms started with me-too models, focused on expanding volumes with no-regard for profitability. The only fodder they survived on was venture money.

 

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