Tighter funding has led to exits, consolidation and focus on unit economics. However, those backed by strategic Investors / subsidiaries of overseas players appear better placed. Recent call with a leading private investor highlighted that GMV growth for ecommerce players will be under pressure in the near-term. This is being driven by limitations on marketplaces by new regulations to become compliant with 25% threshold sale limit from single vendor and reducing heavy discounts that were driving significant growth.
Management commentary of Amazon, Rocket Internet and Softbank over last 15 mths highlights diverging thinking even between strategic investors. Amazon/Softbank talk about market potential and plans for continued investing. Rocket Internet (for Jabong) has moved from market share to balancing growth/profitability to profitability now. In fact,