E-commerce, which stands for electronic commerce, is a way of doing business through the internet. From an investment standpoint, getting into e-commerce is a lucrative option. It’s a great opportunity to make money in the online space. E-commerce software companies, customer support software companies, and others are growing rapidly in the public sector, and you can watch it play out in the start-up market as well. 

Whether private company founders know it or not, they’re being attracted to the sectors that are doing well in the public market. There are hundreds of companies being started in the enterprise support and software space right now, and this is the area where Amazon, BigCommerce, and other commerce companies are looking to do acquisitions.

India, the last big global retail frontier with 1.3 billion people, is an open arena for technology giants as smartphone adoption balloons and cut-rate data plans fuel consumer entertainment and social media. That will encourage more and more Indians to shop over the internet. Currently, about 140 million buy products online at least once in 12 months, according to Forester Research. India’s $800 billion retail markets are dominated by groceries and everyday essentials, which account for about $500 billion in annual sales. The market could grow at least 10 per cent annually to $1.3 trillion by 2025.

Amazon

Amazon, which has invested more than $6.5 billion in India, and Walmart, which acquired Flipkart in a $16 billion deal, are betting the switch to e-commerce will accelerate, and are using local ‘kirana shops’ to extend their reach into rural India. Amazon’s founder Jeff Bezos, said his company plans to invest $1 billion to help digitize small and medium businesses including Kirana Shops. The company has also invested in offline assets, buying stakes in retailers such as Shoppers Stop Ltd.

Facebook

In May 2020, Facebook announced a $5.7 billion Investment in Reliance Jio. Jio had spent 3 billion dollars to acquire dozens of companies in the last year including Saavan, Haptik, Nowflots, etc.

Reliance

Reliance is planning to create an E-Commerce ecosystem. Reliance bought a majority stake in an online pharmacy Netmeds for $83 million. This investment represents 60 per cent holding in the equity capital of Vitalic and 100 per cent direct equity ownership of its subsidiaries — Tresara Health Private Ltd, Netmeds Market Place Ltd, and Dadha Pharma Distribution Pvt Ltd. Reliance also buy out Future group’s business for Rs 24,000 crore. Reliance wants to acquire businesses that have a high growth rate as now the valuation of any company is defined by its growth and not the profits.