We expect India ecommerce to touch USD70bn in revenue by CY20F (vs. USD28bn in CY16) driven by: 1) E-tailing growing ~3x to USD47bn, 2) online travel nearly doubling to USD21bn, and 3) digital advertising growing 3x to USD3.5bn over this period. However, the sector’s reality check with illusive profitability for most of the unlisted players should remain a continuing theme.
Classified will be the most profitable segment, where we are positive on INFOEDGE CORP (leadership in job, restaurant & real estate classifieds) and JUSTDIAL (largest local search player). In online travel, under-penetration of international air ticketing/H&P segment and normalisation of competitive activity in H&P are likely to provide a rodmap towards profitability.
