JustDial's ecommerce venture faces a tough operating environment, in our view. As a horizontal platform, it faces competition from vertical players, some of which have gained reasonable scale. Further, in segments (like electronics) where it competes with players such as Flipkart, Amazon and Snapdeal, Just Dial?s reluctance to invest in logistics and fulfilment would make it even more challenging for it to gain user traction. The same holds true in hyperlocal services, where firms such as Grofers have been gaining traction.
