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A Rant On India And E-Commerce

Over the last few days, over multiple conversations, I've heard rumors about significant layoffs in e-commerce in India, and e-commerce companies being shopped around. Funding has dried up, and because businesses are not yet profitable, there is "consolidation" in e-commerce in India, with investors pushing for businesses to combine operations, with the idea of cutting costs and combining user base, and mostly with the objective of weathering the storm that hit Indian e-commerce after the Indian government announced that it was allowing foreign direct investment in multi-brand retail, but not allowing any investment in e-commerce. This has forced businesses to change business models in India - from direct-to-consumer retail to a marketplace model (since marketplaces are allowed under the current FDI norms). Many e-commerce businesses have shut shop. I'm hearing of large e-commerce companies that have two to six months…

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Written By

Founder @ MediaNama. TED Fellow. Asia21 Fellow @ Asia Society. Co-founder SaveTheInternet.in and Internet Freedom Foundation. Advisory board @ CyberBRICS

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

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