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Online Retail Acquisitions – Are Investors Cutting Losses?


It’s almost 5 years and we saw huge traction in online buying. Industry is new. But players are many. In-store retailers are also making an appearance on Internet. Investors have already put money in e-commerce. In 2009 – USD 105 million, In 2010 – USD 111 million and In 2011 – USD 908 million. Nobody is willing to miss the bus. The result – we have hundreds of etailers evolved within no time.  Many of them have received huge funding from common investors. Top lines of many tier-1 retailers are growing multifold year on year but bottom line is getting a hit.  Reason is Intense competition and every company is trying to grab the customers resulting in huge marketing cost and upfront discount. This is the driving force for many investors to Consolidate – join the two firms into one. The benefit – it will lower down the fixed cost and improve operational efficiency.

Many acquisitions happened to increase the product lines and it can give an inorganic growth to these companies.

The list of Recent Acquisitions

Acquirer
Acquiree
Flipkart
Letsbuy
Snapdeal
Grabbon, Esportsbuy
Yebhi
Stylishyou.in
Myntra
SherSingh, Exclusively.in
HealthKart
Madeinhealth
Fashionandyou
UrbanTouch

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