India'S Small And Medium-Sized Electricity Providers Have Been Killed By Giant Killing.

In the past one or two years, India's electricity supplier has been growing in popularity. It has sprung up Flipkart, Snapdeal and other large scale electronic commerce giants, and has also produced vertical electric providers such as HealthKart, LensKart and DoneByNone.

Since 2011, the India electricity supplier company has shown a good momentum of development, which has received an unequal amount of investment from various Vc firm.

Subsequently, India's various electricity suppliers were fierce.

It vividly deducts the law of survival in the jungle.

Under the strangulation of Flipkart, Snapdeal and other giants, India's small business operators have fallen down, and some companies have been forced to pform or acquire.

Under the pattern of big reshuffle in the electricity supplier industry, there are only a few large companies in the whole category of e-commerce.

Venture capitalists also cast their sights on the vertical electricity supplier sector, expecting a new round of growth in the field.

According to the December 6th report, the fierce competition in India's online retailing industry has forced many small business operators to close or pform. Investors have suggested that some young entrepreneurs should not set foot in the field of burning electricity.

In the field of electronics, such as fashion and electronics, new players are far from competing with giant companies.

In Flipkart, Snapdeal,

Under the strangulation of electric power giants, small business websites have collapsed.

This year, the fashion business Yebhi was forced to pform. Online retail portal BlueGape was shut down, and online shopping platform KoolKart also stopped operating.

Meanwhile, DoneByNone, co-founder of fashion DoneByNone, also submitted his resignation.

Toy network retailers Wopshop, jewellery business 21Diamonds and electronics retailer Timtara also shut down.

"Unless you can find another way, you'd better not create a new e-commerce website now."

BlueGape, CO creator of the Internet retail companies, said.

The BlueGape company was closed down this month.

"We lack core competitiveness and fail to build our own user base.

Rely on other large business platform to make quick money.

To this end, we plan to restart this website within one month and build up a customer base through our own efforts. "

He said.

Those companies that have been forced to close for 2 to 3 years are aware that they can't meet the expectations of India consumers in terms of price or service, just like big business tycoons.

India consumers are very sensitive to price. The small business website is not thick enough to burn money like Flipkart, Snapdeal and so on.

"Nowadays, for investors, all kinds of electricity suppliers that sell everything are not good enough.

Most venture capitalists turn their capital into the vertical electricity providers such as fashion and electronics. "

Rajesh Raju, general manager of Vc firm Kalaari capital, said.

Prior to that, Kalaari capital has injected funds into all categories of e-commerce companies such as Seventymm and Indiaplaza.

However, these electricity supplier companies went bankrupt last year.

"We believe that those companies that focus on the vertical market will achieve the next round of growth in the next few years, such as Zivame, Urban Ladder and BlueStone.

At present, these companies are trying to solve the supply chain problem.

Those giant Flipkart, Snapdeal and Amazon are expanding their scale. Their big money burning rhythm is beyond the reach of small and medium-sized electricity supplier companies.

The fashion business Yebhi was founded in 2010, and won the A round of financing in 2011.

At that time, the whole market was booming, but later, the enthusiasm of venture capitalists gradually declined.

In September of this year, Yebhi was forced to pform into a commodity classified website because it had never been able to find investors and get another round of $40 million financing.

After completing the pformation, Yebhi received 4 rounds of financing from the Nexus Venture Partners and Qualcomm venture investors to get the $40 million needed for development.

"Vertical electricity providers have some room for development, but they can't grow into a $one billion electricity supplier giant."

Yebhi CEO Danish Ahmed said.

The marriage of two electricity supplier companies can not last long.

Last year, UrbanTouch, a consumer electronics company, was finally terminated by Fashion and You.

Under the rules set up by the industry giants such as Amazon, the demand for funds in the electronic business field has become quite high.

All the participants had to burn a lot of money in exchange for market share and size.

The current electricity business is very much like the situation of the Internet industry in the 1999. How to make money has become a difficult problem for all companies.

In recent years, local electricity providers in India have been able to gain market share through a substantial reduction in price, but it is often hard to achieve profits in doing so.

However, some retailers have their own way of survival. They rely on Flipkart, Amazon, Snapdeal and other large platforms to sell products to maintain their own survival.

However, these companies do not have their own customer base and are half dead.

They may be able to keep balance, but not any growth.

Nor can they find any buyers, and investors are far away from them.