“There is no bubble in The e-commerce space”
CFO|October 2016

The word bubble is cropping up in the industry only because many companies are yet to find a way to profitability, feels Prabhakar Sunder, CFO, Voonik.

“There is no bubble in The e-commerce space”

In an interview to CFO India, Prabhakar Sunder, CFO, Voonik, discusses the challenges and the outlook of the e-commerce industry in India. Below edited excerpts from our chat:

What are your views on where the e-commerce industry is headed today?

There is a huge potential for the e-commerce industry to grow. All talks of the so-called bubble are very shallow. Any new industry needs time to develop and mature. Ebb and flow is part of any journey and every successful company tides through these phases. That’s the way Amazon grew into a global giant.

Both Amazon and Alibaba are highly interested in India. Both are targeting to make India their second biggest markets. I think the word bubble is cropping up in the e-commerce because there are multiple companies operating in this space which are yet to find a path to profitability. Among the big players, the current emphasis is on penetrating the market at a rapid pace, which is the reason for the high level of spends leaving the P&L looking bad in terms of bottom line.

About two years ago, the country witnessed the entire private equity space getting excited over the e-commerce industry, and pumping huge funds into Flipkart, Snapdeal and other e-commerce players. But today the same investor community has gone a little slow. What do you think could be the issue?

This story is from the October 2016 edition of CFO.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.

This story is from the October 2016 edition of CFO.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.

MORE STORIES FROM CFOView All
If I Were Not A CFO...
CFO

If I Were Not A CFO...

If I were not a CFO, something else I’d rather be... We set out to find the dream alternate profession that our top CFOs would like to be in. The results were surprising. Find out for yourself and also what other dreams they harbour...

time-read
4 mins  |
November - December 2017
...In Armed Forces I Would Be!
CFO

...In Armed Forces I Would Be!

...In Armed Forces I Would Be!

time-read
1 min  |
November - December 2017
...An Investor In Body & Soul I Would Be!
CFO

...An Investor In Body & Soul I Would Be!

...An Investor In Body & Soul I Would Be!

time-read
2 mins  |
November - December 2017
...A Musician I Would Be!
CFO

...A Musician I Would Be!

...A Musician I Would Be!

time-read
2 mins  |
November - December 2017
“There is no bubble in The e-commerce space”
CFO

“There is no bubble in The e-commerce space”

The word bubble is cropping up in the industry only because many companies are yet to find a way to profitability, feels Prabhakar Sunder, CFO, Voonik.

time-read
3 mins  |
October 2016
New Business Models in These Changing Times
CFO

New Business Models in These Changing Times

New business models poised to change the way the world transacts have Sugata Sircar, CFO and Country Finance Partner, Greater India Zone, Schneider Electric India excited. In this article, he discusses Circular Economy which can radically change business models in the near future.

time-read
5 mins  |
February 2017
India is on a much better footing now
CFO

India is on a much better footing now

Kunal Kundu, India Economist, Societe Generale, on what makes India a bright spot amid gloomy times and why it can’t afford to be complacent. Excerpts...

time-read
2 mins  |
August 2016
The CFO in a (B)orderless World
CFO

The CFO in a (B)orderless World

2016 was forecast to be a challenging and difficult year for the global economy.The events prove it. India cannot stay immune and the Finance leadership must deconstruct to maintain a steady course in these choppy waters.

time-read
4 mins  |
August 2016
Clear Delineation Between Traditional & Digital Business Might Be Hard
CFO

Clear Delineation Between Traditional & Digital Business Might Be Hard

Akhil Bansal, Deputy CEO, KPMG India, on rapidly digitalising economies, challenges and opportunities thereof, and implications for the CFO. Excerpts...

time-read
2 mins  |
August 2016
Partnering HR
CFO

Partnering HR

Bhavin Ashar, Regional Director-Finance with Perrigo API India Private Limited, discusses the dynamics of finance function, partnering with HR and the transaction of HR function.

time-read
5 mins  |
August 2016