Indian Ecommerce is headed sky high
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Indian Ecommerce is headed sky high

Indian ecommerce is set to double to $72 billion by 2020, according to research firm eMarketer – and one entrepreneur wants to help facilitate that growth while picking up a tidy profit himself. SpiceJet Ltd., led by Ajay Singh, is starting a dedicated freighter business to ship goods of all types around the country. That includes same-or-next day deliveries of electronics and other goods from Amazon and Flipkart, as well as groceries, letters, credit cards, and even organs for medical purposes.

Amazon’s share price has appreciated by 66% so far this year

graph 1209 indian ecommerce

SOURCE: Yahoo Finance

Singh said: “We think that the time has come for dedicated freighter aircraft. There’s an ecommerce boom happening in the country.” And he’s right – major global powers like Amazon, Walmart, and Alibaba have been fighting ruthlessly over the nascent market, looking to get a foothold before things really heat up. Singh’s decision to capitalise on these players – without taking sides – is undoubtedly a wise business decision for him. But it’s also great for ecommerce in the country more generally, as it helps to create a deliveries infrastructure that India is sorely lacking.

Singh says the service will start next week, and that SpiceJet will add four converted Boeing 737 jets this year, along with as many as six next year. Those vehicles could prove to be a sensible investment, as this festive season in India is expected to see record-level ecommerce shipments in October. The Economic Times, which cites industry experts on the matter, suggested shipments could cross the three million-per-day figure. That’s a big jump from last year’s two million a day.

Disclosure

Dominion holds a number of companies in its Global Trends Ecommerce Fund that are exposed to the Indian ecommerce market, including Amazon and Alibaba.


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