Makemytrip announced that Naspers (91% stakeholder) and Tencent (9% stake) will sell the Ibibo Group to Makemytrip in exchange for fresh shares issued by Makemytrip amounting to 40% stake in the combined entity. Post the merger, Deep Kalra and Rajesh Magow of Makemytrip will continue as Group CEO and India CEO, respectively, while Ashish Kashyap, the CEO of Ibibo will join Makemytrip as Co-Founder & President. Based on transaction data and FY15 financials available from the Ministry of Corporate Affairs, our back of the envelope estimation of net revenues for Ibibo group points to Continue reading ibibo merges into MakeMyTrip – Consolidation in Travel / Hotel Bookings
UrbanClap operates in India’s largest online home services marketplaces. The addressable market is significant and the total home services market is estimated to be $65Bn across India. UrbanClap offers both Standard Services like (i) plumber, electrician and carpenter (PEC), (ii) beauty, (iii) appliance repair, (iv) pest control, (v) cleaning, (vi) laundry as well as Customized Services like (i) wedding services, (ii) health, (iii) academic, (iv) personal care, and (v) home building.
Half a Million unique users have used Urban Clap and they have got 50% repeat requests. The company is receiving ~100,000 service Continue reading UrbanClap Crescendo in Indian Online Home Services Market
In the North Western United States, hedge fund manager turned entrepreneur was building global eCommerce giant Amazon backed by massive Technological innovations unheard of in the retail industry. In Asia, Jack Ma realizing the potential of Internet for commerce built Alibaba mostly on Winning Partnerships. We’d like to take a look on Alibaba and its group companies’ ecommerce delivery infrastructure such a bottleneck in this part of the world.
All the orders of Alibaba’s merchants are handled by over 16 third-party express companies. The top four express companies (together are known as “Tongda”) by volume have adopted the franchise model that controlled 76% of Continue reading Alibaba’s eCommerce Delivery Infrastructure – Create Winning Partnerships Lesson for India
Consolidation in the e-commerce sector seems to be picking up pace, with 21 mergers/acquisitions in 2015 versus 9 in 2014. The industry could see more such transactions going forward, as fresh funding declines. However, we still see pockets of growth for Indian e-commerce, primarily in the mobile software, gaming and content categories. These categories comprised Continue reading Pace of consolidation in Indian Internet Picks Up
Increasing instances of e-commerce companies scaling back operations due to limited funding availability highlight that all is not well in the start-up world. We expect lower PE/VC funds availability to manifest in three ways: (1) shutdown of companies with high cash-burn amid lack of fresh funding, (2) acquisition of weak companies by stronger peers, and (3) fresh funding rounds at lower valuations.
There have been a number of instances in Continue reading Internet Startups Scaling Down – Welcome to Reality
Zomato currently operates in 23 countries, of which it is traffic leader in 18. However, traffic levels have reached the critical level in only 12 countries, while other markets are still evolving. The company plans to monetize through a full-stack model, i.e., both B2B (primarily advertisements and table booking) and B2C (food ordering) in these 12 countries where Continue reading Zomato shifts Focus to Monetization from Traffic Building