Recent media reports indicate that some segments of the e-commerce space are facing job cuts. Among the prominent and well-publicised names are LocalOye, Tinyowl and Housing.com. The hyperlocal, food ordering and classifieds segments are facing job losses and operations are getting scaled down. Whilst large e-tail players such as Flipkart, Amazon and Paytm are well-funded, new categories seem to be grappling with the funding crunch.
E-commerce is a meaningful revenue contributor to the ad revenue of players such as ENIL (10% in Q2FY16) and ZEEL (6% in 2015). Business continuity challenges of several e-commerce categories lead us to believe that the growth rates of media spending by e-commerce players is likely to moderate.
