eCommerce picks up in India,firms get an edge over others on valuations

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E-commerce start-ups are commanding high valuations faster than companies in any other sector, recent deal negotiations show.

While in sectors such as consumer services or information technology, start-ups hardly raise more than $10 million (Rs45 crore) in their second rounds of funding, group buying and shopping sites such as Snapdeal, Infibeam and Naaptol.com may be negotiating deals of Rs100-200 crore, valuing them at Rs650-1,000 crore.

Investors say the valuations may be a tad high but they are ready to pay a premium due to growth potential, acquisition expectations and differentiated business models.

Shopping sites “are growing from $10 million to $100 million in a year’s time. The businesses are that scalable.

Now is a very good time to start your own eCommerce business. VC’s are much more interested in eCommerce models. In the next 3-5 years I see a few billion dollar ecommerce companies from India making their mark.

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I have compiled a list of eCommerce companies in India, you may like to explore.