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Aditi Srivatsan et. al., Journal of Management Research and Analysis (JMRA)
Available online at http://jmraonline.com
ISSN: 2394-2770, Impact Factor: 4.878, Volume 05 Issue 01, March 2018, Pages: 105-114
E-COMMERCE IN INDIA– AN IMPETUS TO GROWTH
1
Aditi Srivatsan, 2 Reshma A Vemulamanda, 3 Vaishnavi Venkatramana
1, 2, 3
(BBA (F&A), Department of Professional Studies, Bengaluru, Karnataka)
Abstract: The world has witnessed a rather colossal change and shift in the information technology which has
introduced the concept of marketing that operates in the absence of any physical contact between the buyer and
the seller. The entire transaction is carried out online, with the help of a computer coupled with associated
hardware and software facilities. The internet has been a reliable and useful medium for any sort of interaction,
and has hence percolated into the core functioning of tasks. Transacting or facilitating business on the internet is
referred to as e-commerce (Electronic communication). The concept of buying and selling online is said to be
the crux idea of e-commerce. The primary benefits of this mode of exchange revolve around the fact that it
eliminates limitations of time and geographical distance. In the process, e-commerce usually streamlines
operations at lowers costs. E-commerce as a mode of transacting isn‟t confined to the four walls of an edifice,
but is contained within webbed accounts and transactions. This paper aims to discuss the various aspects and
features of e-commerce by focusing our attention on the eight major e-commerce companies currently operating
in India. By studying the rate of growth from their very inception to their present day functioning, we are able to
trace and identify a pattern which allows us to interpret the Indian economy, as a majority of it is comprised of
these e-commerce tools. History of ecommerce is a history of a new, virtual world which is evolving according
to the customer advantage. It is a world which we are all building together brick by brick, laying a secure
foundation for the future generations. It is needless to say that e-commerce has shaped and paved way for a
better and more convenient mode of transfer and therefore the rise and associated trends of ecommerce needs to
be carefully examined. This paper also attempts to accentuate and examine the key challenges and opportunities
this field is faced with or may face in the fourth coming years.
Keywords: E-commerce, Information Technology, Electronic Communication, Indian Economy
INTRODUCTION
Electronic commerce is considered the miracle of the century and rightly so. It is a powerful concept
and process that has fundamentally changed the current and course of the human life. Electronic commerce is
undoubtedly one of the crux criteria of revolution of Information Technology and communication in the field of
economy. This style of trading due to its enormous benefits for humans has spread rather exponentially. It is
perceptible that e-commerce has a variety of advantages in comparison to the traditional mode of business
thereby giving it an edge over any other mode or means of transfer and communication. To get a clearer
perspective and understanding of the subject of e-commerce, it is rather imperative to acknowledge and study
the associated history that traces and accentuates the growth of e-commerce from its inception. The first
occurrence of the term 'e-commerce' dates back to the early 1970s where it was primarily referred to as a
process of electronic data exchange for sending business documents such as purchase orders and voices
electronically. Subsequently, with simultaneous developments in the IT industry, the term electronic commerce
extended itself to the business of goods and services, i.e. buying and selling. Although the Internet began to
advance in popularity among the general public in 1994, it took approximately four years to develop the security
protocols (for example, HTTP) and DSL which allowed rapid access and a persistent connection to the Internet.
In 2000 a great number of business companies in the United States and Western Europe represented their
services in the World Wide Web. At this time the meaning of the word ecommerce was changed. People began
to define the term ecommerce as the process of purchasing of available goods and services over the Internet
using secure connections and electronic payment services. According to all available data, ecommerce sales
continued to grow in the next few years and, by the end of 2007, e-commerce sales accounted for 3.4 percent of
total sales. History of ecommerce is unthinkable without Amazon and EBay which were among the first Internet
companies to allow electronic transactions. Thanks to their founders we now have a handsome ecommerce
sector and enjoy the buying and selling advantages of the Internet. Currently there are 5 largest and most famous
worldwide Internet retailers: Amazon, Dell, Staples, Office Depot and Hewlett Packard. According to statistics,
the most popular categories of products sold in the World Wide Web are music, books, computers, office
supplies and other consumer electronics.
Homepage: http://jmraonline.com, Email: jmraeditor@gmail.com Page 105Aditi Srivatsan et. al., Journal of Management Research and Analysis (JMRA)
Available online at http://jmraonline.com
ISSN: 2394-2770, Impact Factor: 4.878, Volume 05 Issue 01, March 2018, Pages: 105-114
Types of e-commerce
Generally speaking, when we think of e-commerce, we think of an online commercial transaction between a
supplier and a client. However, and although this idea is right, we can be more specific and actually divide e-
commerce into six major types, all with different characteristics.
There are 6 basic types of e-commerce:
Business-to-Business (B2B)
Business-to-Consumer (B2C)
Consumer-to-Consumer (C2C)
Consumer-to-Business (C2B)
Business-to-Administration (B2A)
Consumer-to-Administration (C2A)
1. Business-to-Business (B2B)
Business-to-Business (B2B) e-commerce encompasses all electronic transactions of goods or services
conducted between companies. Producers and traditional commerce wholesalers typically operate with this type
of electronic commerce.
2. Business-to-Consumer (B2C)
The Business-to-Consumer type of e-commerce is distinguished by the establishment of electronic
business relationships between businesses and final consumers. It corresponds to the retail section of e-
commerce, where traditional retail trade normally operates. These types of relationships can be easier and more
dynamic, but also more sporadic or discontinued. This type of commerce has developed greatly, due to the
advent of the web, and there are already many virtual stores and malls on the Internet.
3. Consumer-to-Consumer (C2C)
Consumer-to-Consumer (C2C) type e-commerce encompasses all electronic transactions of goods or
services conducted between consumers. Generally, these transactions are conducted through a third party, which
provides the online platform where the transactions are actually carried out.
4. Consumer-to-Business (C2B)
In C2B there is a complete reversal of the traditional sense of exchanging goods. This type of e-
commerce is very common in crowdsourcing based projects. A large number of individuals make their services
or products available for purchase for companies seeking precisely these types of services or products.
5. Business-to-Administration (B2A)
This part of e-commerce encompasses all transactions conducted online between companies and public
administration. This is an area that involves a large amount and a variety of services, particularly in areas such
as fiscal, social security, employment, legal documents and registers, etc. These types of services have increased
considerably in recent years with investments made in e-government.
6. Consumer-to-Administration (C2A)
The Consumer-to-Administration model encompasses all electronic transactions conducted between
individuals and public administration.
REVIEW OF LITERATURE
Dr. (Smt.) Rajeshwari M. Shettar, “Emerging Trends of E-Commerce in India: An Empirical Study” (2016)
The paper entitled “Emerging Trends of E-Commerce in India: An Empirical Study” attempts to study and
analyse the completely revolutionized mode of business and the various factors responsible for the growth of
ecommerce in India. It also talks about the advantages and opportunities of ecommerce and its effects on various
retailers, people, producers and wholesalers. The study found that, producers can directly sell goods to a few
retailers and customers, threatening the existence of wholesaler and retailers.
Rajendra Madhukar Sarode, “Future of E-Commerce in India Challenges & Opportunities” (2015)
The paper entitled “Future of E-Commerce in India Challenges & Opportunities” attempts to study the
business options available in the future with a paradigm shift in the ecommerce industry keeping in mind the
tremendous growth in the sector. The study shows the current status as well as the future growth. It also
examines the major challenges and barriers faced. The study shows India‟s overall retail opportunities and some
serious challenges faced by the same.
Ernst & Young Pvt. Ltd. “Rebirth of e-Commerce in India” (2011)
This paper named “Rebirth of e-Commerce in India” talks about various aspects of e commerce right from
its evolution in India in the form of different waves to it market size . It also highlights its key concerns and
importance of matters related to shortage of man power, customer loyalty, rapidly changing business models,
inadequate cyber laws and also explains about the investment in e commerce, its multiple engaged stakeholders,
online payment travel, classifieds, e tailing and the e-Commerce ecosystem.
Pallavi Saxena, “E-Commerce-Commerce and Its Impact on Indian Society” (2016)
Homepage: http://jmraonline.com, Email: jmraeditor@gmail.com Page 106Aditi Srivatsan et. al., Journal of Management Research and Analysis (JMRA)
Available online at http://jmraonline.com
ISSN: 2394-2770, Impact Factor: 4.878, Volume 05 Issue 01, March 2018, Pages: 105-114
The paper entitled “E-Commerce and Its Impact on Indian Society” attempts to understand the emerging
need for flexible business that are quickly responsive to fluctuations. It deals with the effectiveness of the IT as
it‟s the backbone and its impacts on the different levels of the society. It also states the inadequacy of cyber
laws, virus problems digital illiteracy and security concerns as a few of the key problems in one of the emerging
market in India. The study shows the need for E- Learning, E- Governance and M- learning initiatives as they
enhances the access to information and educational institutions in remote areas and thereby reducing corruption,
providing support to small and medium enterprises enabling them to flourish their business.
Er. Harjot Kaur , Mrs. Daljit Kaur, “E-Commerce in India – Challenges and Prospects” (2015)
This paper entitled “E-Commerce in India – Challenges and Prospects” describes the different services and
opportunities offered by E-commerce to business, producers, distributes and customers. It also attempts to
highlight the different challenges faced by e-commerce in India and to understand the essential growth factors
required for e-commerce.
Price Waterhouse Coopers, “E-Commerce in India: Accelerating growth” (2015)
The paper entitled “e-Commerce in India: Accelerating growth” interprets the unprecedented growth in
2014 which was driven by rapid technological adoption. Intensifying the completion amongst the big
international players it compares the rise of e commerce in various countries, what differentiates the Indian e-
Commerce market from that of a country like China, the internal and external challenges faced and key
developments. Investments and online business models are also discussed.
Mr. Amith Vikram MA “E-Commerce: Opportunities and Challenges” (2015)
In this research paper we come across an examination of the opportunities and challenges of e-commerce
business in India. It also highlights the overall growth prospect of the ecommerce industry in India. It shows the
impact of ecommerce on the overall growth of the Indian economy. It also concentrates on ethical issues and
security concerns.
Alka Raghunath & Murli Dhar Panga, “Problem and prospects of E- commerce” (2013)
In the research paper titled, “Problem and prospects of E- commerce” we witness an in-depth analysis
of the opportunities of ecommerce, e business, e learning, e commerce education, e insurance in developing
countries. Many organisations have learnt the benefits of e commerce, and are finally using it to their advantage.
The study also shows factors influencing distribution process and forms of global e commerce.
Prithviraj Dasgupta and Kasturi Sengupta, “E-Commerce in the Indian Insurance Industry: Prospects and
Future” (2002)
The paper titled, “E-Commerce in the Indian Insurance Industry: Prospects and Future” talks about the
prospects of e commerce in the Indian Insurance Industry. It draws a parallel between ecommerce and e
insurance. It also analyses the phases of an ecommerce transaction and emphasises on the shift from B2C
applications to B2B applications.
Ms. Bijal N. Zaveri, “E- commerce : challenges and opportunities” (2008)
In the research paper titled, “E- commerce: challenges and opportunities” we come across an analysis of the
growth of e commerce and the factors that influence distribution and forms of global e commerce. It also
highlights the economic issues raised by E- commerce for the WTO and developing countries, and the influence
of developing technology on ecommerce.
RESEARCH DESIGN
1. Statement of problem
The entire period, ranging from the very inception of e-commerce, to its current day functionality, one can
only marvel at the rate and speed of acceptance and transformation. India is a land of opportunities, and e-
commerce has definitely struck the right chords owing to the fact that it is a developing nation. Despite a
majority of the population, refraining from transactions involving virtual users, the number of users of this
mechanism, is vastly significant. In today‟s world of growing consumer dead, the ancient philosophy of brand
loyalty is dead. Consumers want variety, availability and change. And this much needed change is brought in by
e-commerce. It offers to user what traditional markets cannot offer, and that is its best advantage. With only a
few years into its operation in India, e-commerce has observed a significant growth and who is to say that it will
remain constant henceforth? Therefore it becomes imperative to study the effects and consequences of e-
commerce on the Indian economy by tracing the revenues and growth of each of the companies selected solely
for the purpose of the research.
2. Objectives
1) To understand and ascertain the inception, escalation and furtherance of e-commerce in India
2) To analyse and probe the present trends of ecommerce in India by tracing the functioning of the eight major
companies currently operating in India
3) To determine and discern the essential factors required for the growth of the ecommerce sector
Homepage: http://jmraonline.com, Email: jmraeditor@gmail.com Page 107Aditi Srivatsan et. al., Journal of Management Research and Analysis (JMRA)
Available online at http://jmraonline.com
ISSN: 2394-2770, Impact Factor: 4.878, Volume 05 Issue 01, March 2018, Pages: 105-114
4) To estimate the future trends of ecommerce
3. Scope
All necessary data for the purpose of study has been procured from articles and reports that have been
published online. Statistical surveys, research papers and company statements have also facilitated a
comprehensive interpretation of the inception, broadening and growth of ecommerce in India.
4. Source of data
Particulars Sources
IRCTC Economic times
Zomato Forbes
Make my Trip Livemint
Ola The News Minute
PayTm Business Standard
Nykaa Economic Times
Jabong Livemint
Magic Bricks Economic Times
Introduction Searchcio
Types of commerce Bloomidea
FINDINGS AND INTERPRETATION
1. IRCTC
The Indian Railway Catering and Tourism Corporation more popularly known as IRCTC started in 2002 is
India's largest e-commerce players by revenue as filed with the Registrar of Companies having made a
noticeable growth and contributed significantly to the economy and has come a long way. IRCTC introduced a
mobile app that currently sees over 2.5 lakh logins a day and has also launched the SAARTHI app (Synergised
Advanced Application Rail Travel Help and Information) to cater to various passenger requirements; it has also
introduced the option of digital wallets for payments.
From 29 tickets booked in a day to 13 lakh tickets a day number of tickets booked on IRCTC grew by a
significant 90% in 5 years (2010-11 - 2014-15) .The number of tickets booked has grown consistently over the
last couple of years by 90% from 2011-12 - 2015-16.
PROFITS AND TICKETS BOOKED
200 % of internet tickets Number of tickets booked Net Profit 189
150 131
108
100
72
59 54.52
61 49 48.73
50
38.54 43.21 18.3 20
9.7 11.6 14.1 15.8
0
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
The ticket fare revenue also grew by 150% in the 5 years. From 8007 crores in 2010-11, the ticket fare
revenue went up to 20,514 crore in 2014-15.The consistent rise in the ticket fare revenue was on account of
multiple fare hikes and increasing number of upper class bookings.
Homepage: http://jmraonline.com, Email: jmraeditor@gmail.com Page 108Aditi Srivatsan et. al., Journal of Management Research and Analysis (JMRA)
Available online at http://jmraonline.com
ISSN: 2394-2770, Impact Factor: 4.878, Volume 05 Issue 01, March 2018, Pages: 105-114
TRAFFIC AND TOTAL REVENUE
2500
2000
1500
1000
500
0
2000- 2007- 2008- 2009- 2010- 2011- 2012- 2013- 2014- 2015- 2016-
01 08 09 10 11 12 13 14 15 16 17
Total traffic 504.2 804.11 836.61 892.22 926.43 975.16 1,014.151,058.811,101.091,108.621110.95
ticket fare revenue in lkh 800.72 949.85 1241.951541.012051.46
With the increasing use of internet by people across the country, the speed of the IRCTC server has
been increased by over 10 times i.e. from 1200 tickets/minute to 2000 tickets/minute has been extended to
15000/minute in 2015 it‟s also evident from the fact that the percentage of internet ticketing passengers
overtook the percentage of counter ticketing passengers for the first time in 2014-15. From 38.54% share in total
passengers in 2011-12, the internet ticketing passengers went up to 62% in 2016-17 with 3 lakh concurrent users
in 2015. Responding to widespread criticism of its chaotic systems and limited capacity, IRCTC revamped its e-
ticketing tech, naming it NGeT (next generation e-ticketing) system first launched in April 2014 to handle
increased ticket booking. The number of enquiries on the new system has been increased to 3000 per second
from 1000 per second
The Ministry said that they have introduced multiple checks on IRCTC website in order to stop the
misuse of Internet Ticket booking facility by using automated software checks have been placed at the time of
registration and booking, a few of them being:-
CAPTCHA has been implemented on IRCTC website to stop automated registrations while Registering
Single Mobile and email registration has been I implemented on website to stop multiple registrations on
one Individual Mobile. OTP (One time password) is sent to mobile to verify Mobile.
Under the new provision of 2016 a maximum of only 6 tickets can be booked online by an individual user
in a month on IRCTC website and a maximum of 10 tickets in a month can be booked on a single user ID.
Minimum form filling time check implemented in passenger reservation form.
The withdrawal of the service charge has adversely impacted the revenue from the inter segment of
IRCTC from 466.05 crore in16-17 as compared to 632.15 crore in 15-16. IRCTC e ticketing now service about
62% of the reserved tickets on the Indian railways booked online on an average of 5.73 lakh e tickets were sold
daily through IRCTC website in 2016-17.
Income generated through the years (in crs)
2000
1596.31
1500
1,523
954.7
1000 764.93
554.11 1141.21
Income generated
500 719.69
0
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
2. Ola
Ola, is an Indian online transportation network company run by Bangalore-based ANI Technologies Pvt.
Ltd was founded in 2010 as an online cab aggregator in Mumbai .It is currently present in 110 cities across the
Homepage: http://jmraonline.com, Email: jmraeditor@gmail.com Page 109Aditi Srivatsan et. al., Journal of Management Research and Analysis (JMRA)
Available online at http://jmraonline.com
ISSN: 2394-2770, Impact Factor: 4.878, Volume 05 Issue 01, March 2018, Pages: 105-114
country with over 14 categories like auto-rickshaws and bikes, as well as vehicles equipped with connected car
platform for ridesharing, Ola Play. OlaOla Auto expanded to other cities
like Delhi, Pune, Chennai, Hyderabad and Kolkata starting in December 2014 .As of September 2015, Ola was
valued at $5 billion and has expanded its auto services
in Mysore, Chandigarh, Indore, Ahmedabad, Jaipur, Guwahati and Visakhapatnam. Ola has been making
various acquisitions in various industries to keep growing in the ecommerce market. Ola has partnered with
Indian ecommerce companies at launch to provide “one touch” purchases include eyewear online
portal Lenskart, budget hotel network Oyo Rooms, streaming service Saavn, hyperlocal mobile
marketplace Zopper, online bus ticketing platform Busindia, and online photo service Zoomin. While cash
payments are still rampant in emerging markets like India, Ola along with the other e-commerce players want to
lock users into its platforms by linking credit card details to those accounts wherever possible. Its main revenue
lines of being - trip based commission, Ola money wallet, corporate / event tie ups, in cab advertisements etc.
Revenue (in cr)
800
700
600
500
400
Revenues
300
200
100
0
2013-14 2014-15 2015-16 2016-17
o In March 2015, OlaCabs acquired Bangalore based taxi service Taxi For Sure for an approx. US$200
million.
o From June 25, 2015, Ola users have gained access to TFS cabs via the Ola mobile application.
o In November 2015, Ola acquired Geotagg, a trip-planning applications company, for an undisclosed sum.
o In December 2017, Ola acquired Foodpanda's business in India
o In January 2018, Ola flourished its arm to first overseas market in Australia and has aims to run service
in Sydney, Melbourne and Perth.
Ani Technologies Ltd, the company that owns Ola, lost Rs 2313.7 crore in 2016 to earn Rs 758 crore in
revenues, according to company filings. Revenue jumped seven times higher from Rs.51.05 crore in 2013-14 to
Rs.418.25 crore in 2014-15 .Employee costs were at Rs 379 crore and advertising and sales cost the company Rs
385.5 crores, according to a report in The Economic Times . Together, the founders - Ankit Bhati and Bhavish
Aggarwal own about 11% in the company, which was valued at $5 billion in November 2015 when it raised
$500 million. Subsequently, its valuation has been marked down to $3.5 billion by one of its investors. Ola's
revenue increased more than seven times to Rs 758 crore in FY16 up from Rs 103.8 crore in the year earlier.
Despiteespite all the ups and hiccups with hundreds of drivers across cities protesting against falling incomes
and incentives ola remains as one of the most convenient modes of commutation.
3. Make My Trip
Makemytrip Inc. is an Indian online travel company founded in 2000 to empower the Indian travellers with
instant booking and comprehensive; headquartered in Gurgaon, Haryana, the company provides online travel
services including flight tickets, domestic and international holiday packages, hotel reservations, rail and bus
tickets, etc. The company has been recognized as one of India's good travel portals holding 25% market share of
the Online Travel Agency (OTA) hotel booking segment and the company currently has a 41% market share in
all travel categories. The company also operates through 65 retail stores across 50 cities in India, along with
offices in New York City and Sydney. It began to operate from India from 2005. As the pioneer among Online
Travel Companies in India, MakeMyTrip paved way for a revolution in e-commerce. According to a study
conducted by PhocusWright in 2013, MakeMyTrip was marked as the dominant market-leader with 47%
market-share. The company created several travel-related apps for all types of mobile devices (smartphones and
basic cell phones) the year 2011 and also made several acquisitions through the years namely Luxury Tours and
Travel Private Limited (Singapore), Le Travenues Technology Private Limited (Gurgaon, India) and My Guest
House Accommodation (New Delhi, India). In 2012, MakeMyTrip launched travel mobile applications (apps)
for Windows Phone, iPhone, Android, and BlackBerry devices and the route planner provides all basic required
Homepage: http://jmraonline.com, Email: jmraeditor@gmail.com Page 110Aditi Srivatsan et. al., Journal of Management Research and Analysis (JMRA)
Available online at http://jmraonline.com
ISSN: 2394-2770, Impact Factor: 4.878, Volume 05 Issue 01, March 2018, Pages: 105-114
information on more than 1 million routes in India. The company had initially focused on the air ticket
booking segment is now stressing more on the hotel business as the margin in the hotel segment being
offered is better than the profits in air booking The contribution of hotel bookings is currently close to
57 per cent of the total revenue ($192 mn) while packages contribute to about 12 per cent. Air tickets
amount to 31% of the total revenues. One of the biggest consolidation in the travel space talks of the
MakeMyTrip and Ibibo Group merger where the Ibibo Group has reportedly contributed around $82.8 million in
cash to MakeMyTrip. With this merger, Naspers and Tencent - which jointly owned the holding company - will
be selling ibibo to MakeMyTrip (MMYT) in exchange for new shares by MMYT. And also the combined entity
has brought together top brands in the consumer travel space in India including MakeMyTrip, Goibibo,
Rightstay, Ryde and redBus under one umbrella.
4. Zomato
Zomato, an Indian restaurant search and discovery service founded in 2008 by Deepinder Goyal and Pankaj
Chaddah provides information and reviews on restaurants, including images of menus where the restaurant does
not have its own website. The service began as Foodiebay, and in November 2010 was renamed as Zomato and
currently operates in 23 countries, including Australia and United States. 47% stake of Zomato is owned by Info
Edge. In July, 2014 Zomato made its first acquisition by buying Menu-mania for an undisclosed sum. In 2015 -
35 % of Zomato‟s revenues came from India. The business recorded around 120 million sessions in March,
2017. Of these, over 75% were through mobile (web and app). Today, it has a database of 1.27 million
restaurants across the world. The business recorded revenues of `3,230 million in FY2017. It had Operating
EBIDTA losses of `1519 million. The business model focuses on the following: 1. Advertising • Banner ads on
web and mobile apps relevant to a user‟s search of restaurants in an area. • Events, sponsored spots in
collections and corporate tie-ups. 2. • Digitise restaurant menus; provide relevant information (including map
coordinates, pictures etc.). • Regular data updating through feet on street beats. 3. Generate ratings and reviews
and enable picture uploads from users. 4. Provide a „wow‟ user experience by: • Search capabilities by location,
cuisine, dish names. • Convenience through a high quality mobile app. 5. Food ordering on the web and mobile
app • Online food ordering launched in India and UAE (Dubai and Abu Dhabi) from FY2016. - Delivery done
by restaurant or by Zomato‟s logistics partners. - Around 2 million plus orders processed in March 2017. 6.
Table reservation active in 10 cities in India, UAE, Australia and the Philippines. 7. Table reservations (Zomato
Book) across eight cities globally.
5. PayTm
PayTm is an electronic payment and e-commerce site which was introduced in the year 2010; it is a
consumer brand of parent company, One97 Communications. The company has over 3 million offline
merchants across India. It started off as an e- payment platform but it has gradually made its way through the e-
commerce market as well. It serves multiple needs of consumers by offering products like electronics or
apparels and recharge facilities too. It obtained the license required from the Reserve Bank of India to run a
payments bank in 2015 PayTm is amongst the top 10 e-commerce companies in India to have billion-dollar
valuation. Some of its competitors are Mobikwik, Freecharge, PhonePe, Airtel money etc. A huge growth in
PayTm‟s revenue took place after the government‟s decision to demonetise all Rs500 and Rs1000 banknotes on
8 November 2016. The company reported 700% jump in overall traffic and 1000% growth in the amount of
money added into its wallet post demonetisation. InIn its initial stages, the company received their funds from
Ratan Tata and Alipay finances. PayTm has reported net revenue of Rs813.8 crores for the financial year 2016-
17. The net worth of the company stood at Rs 2376.6 crores. Previously it had reported a loss of Rs1549 crores
for the financial year 2015-16 and a loss of Rs 372 crores for the year 2014-15. Companies like PayTm are
responsible for the rise of compound annual growth rate (CAGR), by 34% since 2009. Transactions that take
place on PayTm are transparent, free of corruption and involve very few middlemen. It has also increased its
Homepage: http://jmraonline.com, Email: jmraeditor@gmail.com Page 111Aditi Srivatsan et. al., Journal of Management Research and Analysis (JMRA)
Available online at http://jmraonline.com
ISSN: 2394-2770, Impact Factor: 4.878, Volume 05 Issue 01, March 2018, Pages: 105-114
contribution to India's GDP from 1.2% in 1998 to 7.5% in 2012. According to NASSCOM, the sector
aggregated revenues of US$147 billion in 2015, where domestic revenue stood at US$48 billion, growing by
over 13%, since PayTM‟s tremendous growth as one of the top e-commerce and payment companies of India.
revenue and net loss in crores
869 813.88
1000
210 337
6
0 -372
2013-14 2014-15 2015-16 2016-17
-1000 -1534 -1549
-2000
revenue profit and loss
6. MAGICBRICKS
Magicbricks is a website that provides buyers and sellers of property, with the necessary data related to
properties available in different parts on India. It is a division of Times Internet Limited, a wholly owned
subsidiary of Bennett, Coleman & Co. Ltd. The website is extremely efficient and provides information about
the latest properties, home loans, legal issues, and property analysis. The website also offers a buyer‟s guide to
help buyers make the right decision regarding price, location and other expert advice. In the year 2017, the
website revealed that there was a 43 per cent rise in revenue at Rs 37 crore in the third quarter of this
fiscal. Magicbrick‟s revenue stood at Rs96.6 crore in the first nine months of this year. In the fourth quarter of
the financial year 2017, the company posted a rise in revenue by 30% at Rs36 crore. Throughout the year 2017,
the company‟s revenue grew 20% to Rs132.6 crore. In the year 2015 it reported a revenue growth of 53% for
the first half of the financial year. Magicbricks had a 32% traffic market share in the year 2015 and 43% traffic
market share, in the January-March 2017 period. In the year 2018 Magicbricks announced a 36% sequential
QOQ revenue growth, it reported quarterly revenue of Rs41.1 crore. The website had 34% traffic market share.
7. JABONG
Jabong is a fashion and lifestyle e commerce website founded by Praveen Sinha, Lakshmi Potluri, Arun
Chandra Mohan and Manu Jain in the year 2012. The portal sells apparel, footwear and home décor. Jabong
recorded gross sales of around US $100–150 million in 2012. In 2012 it had the second highest amount of traffic
on its website, within a few months after the site had launched. In 2013, Jabong held an Alexa Traffic ranking of
37 and also ranked 10 in Google Zeitgeist India trends. Jabong also had an international store called
Jabongworld, which was recently shut down. The reported revenue for the financial year 2015 was Rs873 crore
whereas the revenue earned in the financial year 2017 is Rs 757 crores. TheThe estimated Gross Merchandise
Value (GMV), a term used in online transactions to indicate total sales dollar value for merchandise sold
through a marketplace over a period of time, of Flipkart owned Myntra and Jabong is $1.2 billion, out of which
around 400-500 million dollars is being contributed by Jabong.
Revenue and Gross Merchandise Value in crores
2000 1502.9
1320.6
873 757
1000 511.4 438.6
202.74
0
2013 2014 2015 2016
Revenue
8. Nykaa
Nykaa is an Indian e-commerce website that offers beauty, cosmetic and wellness products. Founded by
Falguni Nayar, Nykaa began as an online retailer in April 2012.the Company raised money through funding. In
July 2014, it raised INR 20 crore in funding from private investors and rose around INR 60 crore in Series B
funding in October 2015 led by TVS Capital (series b funding in October). Nykaa closed its last round of
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ISSN: 2394-2770, Impact Factor: 4.878, Volume 05 Issue 01, March 2018, Pages: 105-114
funding by raising INR 104.3 crores led by Max I India. Nykaaykaa had reported net revenue of Rs 214 crores
in the financial year 2016-17. In 2016 they raised Rs104.3 crores through institutional and private investors.
Nykaa has a current Gross Merchandise Value (GMV) of Rs 600 crores. The company is planning to increase
their GMV to Rs 750 crores in the financial year 2018. Nykaa‟s biggest investors include the family office of
Marico Ltd Founder Harsh Mariwala, TVS Capital Funds (Pvt.) Ltd, and Sunil Munjal, joint managing director
of two-wheeler maker Hero MotoCorp Ltd. The founder of the company, Falguni Nayar is planning to Nykaa
public when the company is ready by gunning for IPO in the near future. The company has grown over 360%
with gross merchandise value totalling up to Rs275crores and net revenue of Rs214 crores in the financial year
2017. Recently they introduced luxury brands to their mix of products, the decision seems to have had great
results since 15 % of their sales constitutes of luxury products. They are planning to increase it to 20% in the
financial year 2018. Nykaa also has stores set up in Mumbai, Bengaluru, and Hyderabad etc. These offline
stores contribute about 5% to their total turnover.
The statistical data above indicated and suggested the following outcomes that are a direct product of the
discussion above:
1) The Indian Railway Catering and Tourism Corporation more popularly known as IRCTC started in 2002 is
India's largest e-commerce players by revenue as filed with the Registrar of Companies. According to the
graph prepared, it is evident that there has been a tremendous growth in the net profit, simultaneous growth
in the number of tickets booked and the percentage of internet tickets. Owing to a steady rise in the number
of tickets booked online, we can arrive at the conclusion which reiterates the advantages of ecommerce and
accentuates its impact on a company or a corporation. Keeping in the mind that the period of study ranges
from the early 2000s to the current day scenario, we observe how the number of tickets booked has grown
consistently over the last couple of years by 90% from 2011-12 – 2015-16. From 29 tickets booked in a day
to 13 lakh tickets a day number of tickets booked on IRCTC grew by a significant 90% in 5 years (2010-11
- 2014-15) .The number of tickets booked has grown consistently over the last couple of years by 90% from
2011-12 - 2015-16.
2) OLA has witnessed a steady growth in its income over the years. Having begun its operations in 2010, OLA
witnessed an income of 764.94 crores in the year 2010-11. There was a drop in the succeeding year, with
OLA just earning an income 554.11 crore. The latest updates indicate that OLA received an income of
1596.31 cores in the year 2016-17. Revenue jumped seven times higher from Rs.51.05 crore in 2013-14 to
Rs.418.25 crore in 2014-15.
3) Makemytrip Inc. is an Indian online travel company founded in 2000. The company currently has 41%
market share in all travel categories. From a 85.56 cores as net profit in the year 2010, the company has
attained a staggering 441.61 crores in the year 2017. Also, the company observed a hike in the gross profit
for the year 2017, with a total of 138.94 crores in 2017.
4) Zomato founded in the year 2008, and operates in 23 countries. 35 % of Zomato‟s revenues came from
India.
5) Paytm saw its net losses climb fourfold to 1,549 crores for the year ended March, 2016. Latest reports
suggest that, the biggest beneficiary of demonitisation has been Paytm as people have moved to cashless
payments owing to cash crunch. Gross merchandise value, which estimates the total worth of goods sold
through a digital platform, for paytm was 3 billion last year. Paytm also records over 7 million transactions
worth 120 crores in a day as millions of merchants and consumers indulge in cashless transactions.
6) Jabong, recorded gross sales of 150 million dollars in the year 2012, which was a few months after it had
been set up. The revenue for the financial year 2015 was 873 crores whereas revenue in 2017 was 757
crores.
7) Nykaa has reported net revenue of 214 crores in the financial year 2016-17. The company has grown over
360% in the year 2017. Gross merchandise Value for the year 2017 was 275 crores and the net revenue was
214 crores. The company has definitely witnessed exponential growth since its inception.
CONCLUSION
Businesses grow and become bigger businesses, they acquire land and acquire some more land, but true
growth can be achieved only when it is not restricted by that of the four walls surrounding the operations. E-
commerce allows and gives us that escape. It isn't contained within edifices or instruments, but is contained
within webbed accounts and transactions, each of them interconnected with the other.
As a result of the globalisation and revolutionised technology, the term e-commerce represents the edge
of success in this modern age of computers. It can be said without a doubt that e-commerce is one of the most
important facets to have emerged in the recent times. India is the seventh-largest by geographical area, the
second-most populous country, and the most populous democracy in the world. All of this is said to be in
alignment with that of a developing nation, and if that development is to be measured, how can we ignore the
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role of e-commerce in it? The past few years of e-commerce operation in India, we have seen the embracing of
e-commerce technology by the numerous companies set up. Going by the statistics, there has been a definite
surge in the past few years in terms of valuation and revenues earned by each of those companies. Owing to its
low cost, it is most the preferred alternative and forms an integral part of any sales strategy. Every coin has two
sides and much like that coin, the topic of e-commerce is subject to its pros and cons, but if one where to ignore
the benefits of e-commerce, would there be anyone to accurately portray development? As they say, for you to
achieve your goals, visitors must first achieve theirs, and nothing facilitates that transparency and ease in a
business as much as e-commerce. With only a few years into its operation in India, e-commerce has observed a
significant growth and who is to say that it will remain constant henceforth? E-commerce has indeed been an
impetus to growth in India, and we couldn‟t agree more.
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