Delhivery raises $85 million
According to a May 6 report from TechCrunch, Indian (EPI) e-commerce logistics startup Delhivery raised $85 million in funding a few months after it raised $35 million. This came after leading Indian e-commerce players like Flipkart and Snapdeal were valued highly by private investors. Now, Flipkart is valued at $11 billion after it raised $700 million a few months ago. Snapdeal also raised more than $1 billion to date.
Incidentally, Alibaba (BABA)—China’s (FXI) largest e-commerce player—had intentions to enter the Indian e-commerce market with a stake in Snapdeal. However, the deal fell apart due to a disagreement on the valuation of the stake. eBay (EBAY) is also another player that’s trying to gain market share in India. Ebay has been present in India for ten years.
Amazon wants to leverage the Indian e-commerce market
The Indian e-commerce market is experiencing strong growth. According to a report from Business Standard, citing Morgan Stanley (MS), India could become the fastest-growing e-commerce market in the world. This market could grow from $2.9 billion in 2013 to $100 billion by 2020 at a CAGR (compound annual growth rate) of about 66%, as the above chart shows.
This could be why Amazon (AMZN) has been interested in investing big in this market. A few months ago, it surprised everyone by announcing that it will invest $2 billion in the Indian e-commerce market over the next few years. During the 1Q15 earnings call in April, Amazon mentioned that it’s close to breaking even in India. We discussed this in Amazon Reports Mixed First-Quarter International Results.
For more on Amazon’s 1Q15 earnings, please read Amazon 1Q15 Earnings Surprise the Company as Much as Investors.