Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Ecommerce Expected to Grow in India
Mar 5, 2016

Despite growing losses, the growth potential of ecommerce continues to excite many. As reported in the Business Standard, Forrester expects ecommerce in India to grow from US$12 billion in 2015 to US$75 billion in 2020. Today's chart shows this.

The growth is based on the idea that the online buying population will grow in India at a compounded annual rate of 28%.

And it's not just India. Online retail spending is expected to surge in China, Japan, South Korea, and Australia too. But the rate of growth is touted to be faster in India and China.

The growth potential may be there. But we maintain that ultimately what matters for ecommerce firms is profitability. Currently, most are mired in losses. And if these losses keep getting bigger, there will be a point when venture capitalists and private equity funds will re-assess their investments. And start thumbing down valuations. A glimpse of which we have already seen for the biggest of them all, Flipkart.

Do you think that strong revenue growth from online retail will translate into profit growth for Indian ecommerce firms?

Data Source:Forrester forecast Asia-Pacific,
Business Standard

This Chart Of The Day was published in The 5 Minute WrapUp - Will Valuations of Loss Making Startups Soon Bite the Dust?

Equitymaster requests your view! Post a comment on "Ecommerce Expected to Grow in India". Click here!


Our Most Popular Charts

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms