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Comments
 

Ansuman Mishra

All said and accepted. But is the opinion doing justice, by extrapolation on the basis of past and present figures? There will be a time when competition will be so high that the e-commerce companies will look for more than just the retail segments where they could differentiate themselves. There are sectors like agriculture, consumer awareness , education and medical facilities,to name a few, especially in rural India where the e-commerce companies can either make their own segment or outsource their services so as to reduce the distribution bottlenecks and provide better services. With mobile services penetrating rural areas now, it is a very large and untapped market. Done in the right way, it could give large returns and hence justify the valuations, if not now, then in the long term.

26 Aug 2014, 01.32 PM

venkat iyer

When we talk about valuations being inflated, we are talking about a context extending to a maximum, of say, 10 years. No valuation, for that matter, no projection is carried our beyond 10-12 years. Rural India has still a long, long way to go. When even electricity and roads are not implemented well in those areas, talking about e-services is a tenacious (in a frivolous sort of way) claim to make. We agree that there is growth, but not as fast as these valuations show us. In a matter of three months, the valuations rose in billions. Why did they not factor in this rural potential an year back? Was India so different? We say this is all because of the hype. It might not be a genuine valuation (calculated and rational).

26 Aug 2014, 06.59 PM

venkat iyer

"There will be a time when competition will be so high that the e-commerce companies will look for more than just the retail segments where they could differentiate themselves" Then why are just the valuations of e-tailing firms increasing? Why not other firms?

26 Aug 2014, 07.01 PM