The buzz is that two online retailers, based out of India, did a combined transaction worth $20 million just on the Diwali day, last month. Also, 25 per cent of the total retail market in the country is tipped to be the e-commerce share in the next 10 to 15 years, from a negligible pie now.
Going by the recent pace of online retail growth at 25 per cent annually and net penetration crossing the 100-million mark, the country could reach this figure even faster than projected. This is a contrast to e-commerce making for just eight per cent of the total retail business in the US, where online retail had taken off way back in 1995.
These are some factors driving the plans of a relatively new online retail company, Exclusively.in, that caters to the NRI (non-resident Indian) market in the US and UK from its hubs in New Delhi and New York. For instance, the e-retailer is planning to create an India brand for the global market, as well as for domestic consumption in the clothing-lifestyle segment, co-founder and CEO Sunjay Guleria told Business Standard in an interview.
Several angel investors will be part of the new venture, but Guleria did not disclose the names.
In-house designers are likely to play a key role in taking the India message across the shores through this initiative.
The e-commerce player at present deals with Indian wear sourced from a host of prominent designers, including the likes of Ritu Kumar and Tarun Tahiliani, apart from accessories and other products.
The online retail company, that launched in June 2010, is looking at expansion into new geographies as well. Canada, Singapore, Malaysia, South Africa and Australia are among the markets that Exclusively.in is looking at for expansion, besides focusing on the India story.
On acquisitions, Guleria said, “It’s too early to talk about it at this point. But, we are looking at designer collaborations.” Whether the company would look at the exit option later, he said, “We are focused on expansion right now,” adding that, “It is any entrepreneur’s dream to make the company public.”
If there are synergy possibilities with other companies subsequently, the company may go for it, he indicated.
Exclusively.in has already gone through two rounds of funding, with investments coming from Tiger Global, Accel and Helion. “We are not looking for any fresh fund at this point,” he said.
Some of the leading online retailers in the India market include Flipkart, Myntra, MakeMyTrip.com and Letsbuy.com. Against the total retail sales in India at around $395 billion now, online sales stand at an estimated $400-$500 million.
