E-Commerce in India at Turning Point: Shailesh Chitnis (F10)

The Wall Street Journal

A ripple of mergers and closures among India’s e-commerce websites that began last year is threatening to become a wave, as these companies find it harder to get fresh funding.

A slew of recent deals demonstrate this trend.

Last month, baby product-seller Babyoye.com reportedly merged with Bangalore-based Hoopos.com, which also sells baby products.

In early March Urbantouch.com, an online fashion retailer for men, was shuttered less than a year after it was acquired by clothes retailer FashionandYou.com.

Later that month, Buytheprice.com, a site connecting buyers and sellers, was bought by Tradus.com, another site offering a similar service.

In February, fashion retailer Zovi.com bought local rival Inkfruit.com.

Most e-commerce sites don’t share financial information publicly because they are not listed, but venture capital investors in such firms privately admit that many of these sites won’t break even anytime soon.

Read the full piece

Read part two of the series: Formula for Startup Success in India