Alibaba’s entry could upset the signs of equilibrium in e-commerce, with Flipkart and Snapdeal beginning to focus on building profitable businesses. The capital Alibaba brings could also spark a war between it and US-based Amazon, potentially sidelining homegrown entities.
Sources say Paytm e-commerce plans to add close to a billion products from across the globe to its platform before the festive season this year. It would include sellers from Southeast Asia especially from Alibaba’s other investments such as Lazada from Indonesia.
This would be nearly twice the number of products compared to those on Amazon’s platform in India and nearly 20 times compared to Flipkart and Snapdeal.
India’s e-retail sector growth fell by 15 times to 12 per cent in 2016, to $14.5 bn. In 2015, the sector clocked $13 bn, growing 180 per cent over the previous year, according to RedSeer Consulting. However, the outlook for the market continues to remain extremely positive in the long term.