There are pockets of overvaluation and investors are now asking companies to show them the money
Till recently, the Indian ecommerce sector could do no wrong. New-age entrepreneurs with business ideas were being wooed by venture capitalists and private equity investors from abroad who wanted a share of this exciting new economy in the making in India. If Silicon Valley had spawned startups which are the toast of the world today, India was ready to witness its own boom in the e-economy. The result was a massive spurt in valuations—think Flipkart, Snapdeal and a host of smaller but significant ecommerce firms across various verticals. Online retail and allied services became the next big thing, and quite a few attracted staggering valuations which made the older, listed brick-and-mortar companies look jaded in comparison.
(This story appears in the 08 January, 2016 issue of Forbes India. To visit our Archives, click here.)