We all know online shopping in India is growing at a very fast clip. At the same time, there is an intense competition in ecommerce space, especially among the top 3 players. Another aspect that everyone is probably aware about is, all this aggressive pricing and discounts are being paid by Venture Capitalists’ pockets.
Flipkart, Amazon and Snapdeal, all of them have raised investments or have commitments of $1 Billion or more. This money is being burned to acquire new customers, offer discounts and pump up products on offer.
While we are all aware that these sites are losing money, you will be amazed to know the quantum of loss these ecommerce players have incurred.
Check out these 2 graphs below and be stunned.
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