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E-business is big biz for VC funds

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The nascent but rapidly growing $11-billion domestic e-commerce market continues to draw big-ticket investments. On Wednesday, Delhi-based restaurant discovery service Zomato.com announced raising $60 million at a post-money valuation of $660 million.

This round of funding led by Info Edge and Vy Capital, along with existing investor Sequoia, will help Zomato accelerate its global expansion plans and new product development.

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Zomato attracting the fresh round of funding follows Japan’s telecom and media major SoftBank late last month pumping in a cumulative $840 million into Snapdeal and Ola. The total investment in e-commerce firms has already crossed the $3-billion mark in the first 10 months of the year, which is nearly a fivefold jump from 2013.

The e-commerce market in India is projected to reach around $20 billion by 2015, largely fuelled by the growth of internet users and penetration of smartphones along with measures like e-tailers offering consumers the facility of cash on delivery in a country where the usage of credit cards is still not widespread.

What hearten those bullish on e-commerce is the projection by IAMAI and IMRB International on Wednesday that the number of internet users in the country is expected to grow 32% to 302 million this year from 213 million at the end of December last year.


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