Delhi-based e-commerce venture Valyoo Technologies is looking to sell three of its vertical-specific sites WatchKart, BagsKart and JewelsKart and focus on its flagship online eyewear store LensKart, reports The Economic Times.
Valyoo Technologies co-founder Peyush Bansal has told the publication that they intend to be the number one eye-wear player in India, rather than being the number one player in bags and they will consider selling these sites if they find a good buyer.
This is apparently part of Valyoo’s plan to turn LensKart profitable by March 2015. Note that LensKart accounted for 50% of Valyoo’s revenues as of February 2013. Bansal told ET that LensKart is now generating an average 1,000 transactions a day with an average transaction value ranging between Rs 1,100 and Rs 1,200.
Valyoo had earlier taken a vertical specific approach, as opposed to choosing to launch a single site and grow horizontally. It was also planning to launch new sites focused on categories like health & beauty products, fashion & lifestyle among others by the end of 2012, but Valyoo dropped this plan in September 2012 to concentrate on the existing four sites.
That being said, WatchKart, BagsKart and JewelsKart faces severe competition from popular e-commerce sites like Flipkart, Amazon India, Myntra and Snapdeal which offers similar products, thereby making it tougher for these portals to gain significant market share in the country.
On the other hand, LensKart faces less competition and also seems to have gained a significant share in the online eyewear segment. Therefore, it would make sense for Valyoo to shift all its resources to LensKart in a bid to make it the top player in the online eyewear segment.
This could also increase the probability for investors seeing a value in Valyoo, whenever it plans to raise further investment. As an investor, who would you bet on? A top player in a niche category or a lowly placed player in the space where there are players like Flipkart and Amazon India already.