The effects of demonetisation are wearing off now, and logistics company Gati Ltd said that the indication that its Cash-on-delivery business now accounts for 50% of ecommerce orders is "a signal that now the demonetisation piece is definitely behind." This is still lower than a year ago, when Cash on Delivery accounted for 67% of its ecommerce business. "We do not need to worry about that going forward," Dhruv Agarwal, Chief Strategy Officer of Gati said on its earnings conference call. "It is now about the industry fundamentals and of course our competitiveness in the context to take us forward." Gati reported ecommerce revenues of Rs 214 crores for FY17, up from Rs 207 crores in FY16, but there's a sense that things could have been better, had it not been for demonetisation. "Q3 typically is the best quarter for e-commerce because that is when the big Diwali sale etc., and as you know right after that in November we had demonetisation, which actually affected our Q3 number could have been much higher than it was." Q3 reported a decline in orders. There were lingering effects of demoneization in Q4-FY17, "which took more time to taper of in select industry verticals such as consumer durables, textiles and apparel." Q4FY17 reported revenues of Rs 50 crores. This is down from Rs 63 crore for the same period last year - Q4-FY16. Note that in Q4-FY16, Gati said that its ecommerce business saw about 16,000 orders per day. Funding for ecommerce companies brings hope…
