In 2014, Flipkart, SnapDeal, Ola & PayTm attracted 69% of the total VC/PE money that flowed into the Indian Internet industry, but in 2015 that exposure went down to 48%. This is an indication that the Internet landscape in India is broadening and deepening as more start-ups are born outside of the SPOF stronghold.
Both Flipkart and Amazon have built strong in-house delivery and logistics networks over the last two years. This helps them make an indelible impact on the customer. Snapdeal, on the other hand started with full dependence on 3P, but has now made strategic investments to improve the delivery experience.
Paytm started as a digital wallet company but now is aggressively extending into the eCommerce segment, where it is also leveraging Alibaba?s seller base. Ola, on the other hand, along with its taxi aggregating business has recently started operating in the food delivery and shuttle bus service verticals.
Snapdeal has a larger seller base than its competitors and hence is a pure marketplace. Flipkart started with a smaller seller base but is now aggressively expanding it. We believe to some extent this also explains why Snapdeal has a stronger mindshare in Tier 2/3 cities while Flipkart has a higher mindshare in Tier 1 cities.
