In a year, amazon and alibaba will dominate indian ecomm

1. In a Year, Amazon and Alibaba
will Dominate Indian Ecomm
COMING CHURN Market reaching maturity of players, key
contenders will be decided in 6-9 months, says Paytm CEO; co to
hive off its ecommerce business into a separate entity

2. Contd…
The fight for India's lucrative ecommerce market will be mainly between Amazon
and Alibaba, with the contours of the battle likely to be clearer in about a year, says
Vijay Shekhar Sharma, chief executive officer of Paytm, a company backed by the
Chinese online retailing giant.
“The ecommerce business and market is reaching maturity of players. The next 6-9
months, it will be decided who the key contenders of the business are. Logically, to
fight Amazon, you need the might of a strategic player that is why it makes a lot of
sense for people to align with Alibaba versus a lot of others,“ Sharma said,
signalling the possible start of consolidation in the Indian ecommerce market.
Paytm, a digital wallet and online retailer backed by Alibaba and its affiliate Ant
Financial, is preparing to start a payments bank. It will spin off its ecommerce
platform into a separate company , which will have a new name and brand and the
same shareholders as Paytm. It will then look to raise funds or be merged or
acquired.The entity will be separate from the company's payments bank, which will
go live around October, pushed back again by a quarter, Sharma said.

3. Contd…
India's ecommerce battle lines are already being drawn. Amazon, the world's
largest online retailer, said last month it will invest an additional $3 billion
(over `20,000 crore) in India, raising the stakes after having spent about $2
billion.
The announcement came as existing biggies such as Flipkart and Snapdeal
face additional pressure to raise fresh funds, when money is harder to find
than before and the government has written up rules that bar platforms
from offering deep discounts and cash-backs.
Alibaba plans to directly enter India's online retail market, which Goldman
Sachs projects will more than treble to $36 billion in 2016-17 from $11 billion
in 2014-15. Alibaba Group Holding's 40% share in Paytm gives the Chinese
ecommerce giant a strong foothold in India to begin with. However, it also
holds a 4% share in Snapdeal.

4. Contd…
Sharma is timing the bifurcation of Paytm's businesses around the festival of
Diwali. “We are going to make the marketplace separate, then we will be
able to raise money, or do M&A, which means we will look to acquire correct
optimum sized (companies) to become larger,“ Sharma said, without sharing
details of how much equity will be diluted to raise cash and who the new
investors are likely to be.Sharma expects Paytm's ecommerce business would
be profitable on all levels by October, when Diwali will be celebrated this
year. “Now is the time that Paytm should be identified with payments and
financial services and commerce business can get its own name in due
course,“ he said, adding that the move will bring clarity among merchants
and investors, in terms of future investments, focus and also unlock value for
both businesses.

5. Contd…
On the payments bank side, the Noida-based company has put in place
financial and technology integration on the backend from Infosys's
Finacle core banking software, and Wipro, preparing for a late October
or early November launch. The start of operations will hinge on
approval from the Reserve Bank of India.

6. For Details and Appointment contact:-
Parveen Kumar Chadha… THINK TANK
(Founder and C.E.O of Saxbee Consultants & Other-Mother
marketingandcommunicationconsultants.com)
Email :-saxbeeconsultants@gmail.com
Mobile No. +91-9818308353
Address:-First Floor G-20(A), Kirti Nagar, New Delhi India Postal Code-110015