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November 10, 2015

How Many E-Tailers Will Remain Standing by Diwali 2016?

Alok Goyal of SAIF Partners (and prior to that CEO of FreeCharge and redBus) writes in Economic Times:
According to various industry sources, the total burn rate across the top 10 ecommerce players appears to be ~$9 million per day...If we were to assume a year-on-year growth of 150%, by next Diwali, the top 10 companies would need about $22 million per day to sustain business with the current unit economics. That means companies will burn about $6 billion to sustain the current trend until next Diwali.  
There are hardly any investors out there who can support that pace of cash burn. 
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