Publications

There is no gainsaying the fact that the e-commerce market in India is growing at a frenetic pace, a boundless excitement with new ideas and, it seems, a bottomless supply of VC funds. The Foreign Direct Investment (FDI) rules – Indian government does not allow FDI in online retail companies that own inventory and sell directly to consumers – has compelled the largest companies such as Flipkart, Snapdeal and even Amazon in India to pivot to a marketplace (connecting sellers to end consumers) model.

As market saturation and maturing populations compelled firms to step out of the developed world to explore global prospects, many floundered in their attempt to replicate their business models in these uncharted territories. With rising income and awareness levels, emerging markets are expected to grow to nearly USD 30 trillion by 2025.

While much has changed in India demographically, socially and especially economically, since its liberalization in the early nineties, much also remains the same. In particular, this nation of 1.2 billion people is struggling to bring financial inclusion to its masses.