Indian e-commerce is projected to explode from $10 billion to $43 billion in the next five years, according to Nomura's India Internet Report last month. There are 11 categories, and within them 42 players, that are poised to shape this blazing path.
With an estimated market of $350-400 billion, the grocery segment is larger than anything else. “What is seductive about the grocery segment is the high frequency of transactions,“ says Rehan Yar Khan, founder of Orios Venture Partners.
It's also challenging. One needs to build hyper-local sourcing, warehouses and supply chain to ensure fresh products.Hence, expansion across regions is staggered. The exception is BigBasket, which is in three cities.
Online players stock 12,00013,000 products, against 400-500 by kirana stores. But, “logistics is a challenge in terms of timing, order sizes and the large inventory,“ says Vipul Parikh, co-founder and CFO, BigBasket.
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