The tech investor T V Mohandas Pai has said on April 20th that India's e-commerce sector has entered a reality check phase with players focusing on cost cutting and business viability as investors seek performance. Pai the ex-CFO of software major Infosys has said that 2015 was a year of exuberance as a lot of money flowed into the sector but it is no longer the scene now and the funds have become very costlier.
Pai has stated that people are now beginning to ask questions as to when e-commerce business will be viable and when they will create a sustainable business and value for the money they have put in which is good news. Many e-commerce players believed that if they go on giving fat discounts and sell more, they would get more revenues and higher valuation.
The E-commerce players should build business based upon efficiency and not upon steep discounting and discounting can be there to the extent of savings they have compared to a conventional store. It is good news as they are getting cautious and they are cutting costs.
Meanwhile funding will come in for B2B and players with sustainable businesses and great technology and the direction of the funds may change and it will not come down in a substantial manner. He has also added that startups are coming; some of them are raising money while some of them are failing and it's continuous.
