High-profile investments into the industry include eBay leading a US$50 million injection in the Indian online marketplace website Snapdeal in June. Flipkart, another popular Indian shopping website, in October raised $160m from investors including Morgan Stanley Investment Management. Just a few months earlier it secured $200m from investors including Naspers, a South African e-commerce company.
"If you look at it from an Indian perspective as a whole, we haven't seen VC [venture capital] flowing into other sectors as it has in e-commerce in the last year even though the economy has been bad and foreign investment has dried up," says Sandip Shah, the co-founder and managing director of Shopyourworld, a shopping portal headquartered in Singapore and targeted at the Indian consumer. "There has been significant investment in e-commerce which only goes to show that they recognise the potential in India. They've seen the Chinese market and there are companies which are even larger than Amazon in China, so they see potential."
The consensus is that while there is enormous scope for growth in India, it will take time for most players to achieve profitability and dozens of online retail companies have set up shop and then failed over the past couple of years, analysts say.
While the Chinese online retail market has boomed in recent years, India is lagging behind because of factors including slow internet speeds and high prices for web access, which is playing a role in restricting the number of internet users, Mr Shah says. India, which has a population of more than 1.2 billion, is the third largest in the world with 137 million internet users, but it has only 25 million online buyers, according to a report by the Internet and Mobile Association of India and KPMG. By contrast in the US, there are 245 million internet users and 156 million online shoppers, while China has 538 million internet users and 270 million online buyers, the report stated.
"I think that everybody sees a very high potential as far as India is concerned," says Mr Shah. "It's going to take maybe three to five years before we see a huge jump." The limited number of credit card users in India means that online retail websites in India generally need to offer cash on delivery, he says. This sometimes leads to customers not fulfilling payments on order and a delay in receiving payments compared to a credit or debit card transaction, and that is another major challenge for the online sector in India, he adds.
Although there are funds from overseas coming into the Indian e-commerce sector, there are major restrictions which are holding back further investment. Foreign direct investment (FDI) into websites where products are directly sold to the customer by the company is banned in India. FDI is, however, allowed into retail websites which operate through a marketplace model - where the site is essentially a platform to sell other retailers' products.
"The reason why online has investor interest is because it is still in a very nascent stage with very high potential to grow," says Pragya Singh, the associate vice president of retail at Technopak, a consultancy based in India. "A lot of players will look to capture part of this growth opportunity and India is the place to invest in because this is where the rapid growth in the sector will come in the online sector."
India's FDI rules mean that companies are already using or have converted to the marketplace model to raise investment, or they have structured their business as two separate entities – one of which operates on the marketplace model – to comply with the regulations.
Ms Singh explains that if India were to relax these rules, the floodgates would be opened.
"If it opens up, the whole process will become more transparent," she says. "If FDI was allowed, it would simplify the way businesses operate. It would help to raise funds and attract international companies into India."
India is definitely a long-term investment, however. Profitability is a major challenge for online retail companies in India, given high levels of competition, Ms Singh says.
"No one is really making money and if you're growing very fast you end up burning cash that fast so you need investors who have full faith in your business model and are able to see it through over the next few years."
She explains that now there is "more sanity that has come into investment" into online retail in India as the market is evolving and investors are able to be more selective.
Pepperfry.com, an online marketplace website in India that specialises in selling furniture, this year managed to raise $8 million from Norwest Venture Partners after raising $5m last year from the Silicon-Valley based firm which has an Indian division.
"At this time profitability is definitely not around the corner for most Indian online firms," says Kashyap Vadapalli, the chief marketing officer and head of new business at Pepperfry.com. "At Pepperfry, our focus has been on verticals where there are high margins and therefore we are at a transactional level and even after shipping items out we are profitable. We may not be covering all our fixed costs, but we are significantly profitable at a variable cost level."
He explains that the operating environment is not easy.
"Because of competition, I think the costs of operations have gone up," says Mr Vadapalli. "I'm not just talking about discounting in terms of price wars – that's just one aspect of it. There's competition for talent, the competition for advertising.
"Given that most players advertise using the various search engine platforms and when everybody is bidding for the same types of categories or same types of keywords, the prices of those keywords tends to escalate, so even those prices have gone up. The cost of driving traffic, the ability to charge high margins – all of them are compromised because of the high degree of competition. At this stage, because the market has not fully reached their potential but there a whole lot of active players, there is a whole lot of competition going on and it has definitely impacted the cost of operations."
business@thenational.ae
Test
Director: S Sashikanth
Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan
Star rating: 2/5
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
World%20Food%20Day%20
%3Cp%3ECelebrated%20on%20October%2016%2C%20to%20coincide%20with%20the%20founding%20date%20of%20the%20United%20Nations%20Food%20and%20Agriculture%20Organisation%2C%20World%20Food%20Day%20aims%20to%20tackle%20issues%20such%20as%20hunger%2C%20food%20security%2C%20food%20waste%20and%20the%20environmental%20impact%20of%20food%20production.%20%0D%3C%2Fp%3E%0A
Cryopreservation: A timeline
- Keyhole surgery under general anaesthetic
- Ovarian tissue surgically removed
- Tissue processed in a high-tech facility
- Tissue re-implanted at a time of the patient’s choosing
- Full hormone production regained within 4-6 months
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
Results for Stage 2
Stage 2 Yas Island to Abu Dhabi, 184 km, Road race
Overall leader: Primoz Roglic SLO (Team Jumbo - Visma)
Stage winners: 1. Fernando Gaviria COL (UAE Team Emirates) 2. Elia Viviani ITA (Deceuninck - Quick-Step) 3. Caleb Ewan AUS (Lotto - Soudal)
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
Bert van Marwijk factfile
Born: May 19 1952
Place of birth: Deventer, Netherlands
Playing position: Midfielder
Teams managed:
1998-2000 Fortuna Sittard
2000-2004 Feyenoord
2004-2006 Borussia Dortmund
2007-2008 Feyenoord
2008-2012 Netherlands
2013-2014 Hamburg
2015-2017 Saudi Arabia
2018 Australia
Major honours (manager):
2001/02 Uefa Cup, Feyenoord
2007/08 KNVB Cup, Feyenoord
World Cup runner-up, Netherlands
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
LIVERPOOL%20TOP%20SCORERS
%3Cp%3E(Premier%20League%20only)%3Cbr%3EMohamed%20Salah%20129%3Cbr%3ERobbie%20Fowler%20128%3Cbr%3ESteven%20Gerrard%20120%3Cbr%3EMichael%20Owen%20118%3Cbr%3ESadio%20Mane%2090%3Cbr%3E%3C%2Fp%3E%0A
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
Where to donate in the UAE
The Emirates Charity Portal
You can donate to several registered charities through a “donation catalogue”. The use of the donation is quite specific, such as buying a fan for a poor family in Niger for Dh130.
The General Authority of Islamic Affairs & Endowments
The site has an e-donation service accepting debit card, credit card or e-Dirham, an electronic payment tool developed by the Ministry of Finance and First Abu Dhabi Bank.
Al Noor Special Needs Centre
You can donate online or order Smiles n’ Stuff products handcrafted by Al Noor students. The centre publishes a wish list of extras needed, starting at Dh500.
Beit Al Khair Society
Beit Al Khair Society has the motto “From – and to – the UAE,” with donations going towards the neediest in the country. Its website has a list of physical donation sites, but people can also contribute money by SMS, bank transfer and through the hotline 800-22554.
Dar Al Ber Society
Dar Al Ber Society, which has charity projects in 39 countries, accept cash payments, money transfers or SMS donations. Its donation hotline is 800-79.
Dubai Cares
Dubai Cares provides several options for individuals and companies to donate, including online, through banks, at retail outlets, via phone and by purchasing Dubai Cares branded merchandise. It is currently running a campaign called Bookings 2030, which allows people to help change the future of six underprivileged children and young people.
Emirates Airline Foundation
Those who travel on Emirates have undoubtedly seen the little donation envelopes in the seat pockets. But the foundation also accepts donations online and in the form of Skywards Miles. Donated miles are used to sponsor travel for doctors, surgeons, engineers and other professionals volunteering on humanitarian missions around the world.
Emirates Red Crescent
On the Emirates Red Crescent website you can choose between 35 different purposes for your donation, such as providing food for fasters, supporting debtors and contributing to a refugee women fund. It also has a list of bank accounts for each donation type.
Gulf for Good
Gulf for Good raises funds for partner charity projects through challenges, like climbing Kilimanjaro and cycling through Thailand. This year’s projects are in partnership with Street Child Nepal, Larchfield Kids, the Foundation for African Empowerment and SOS Children's Villages. Since 2001, the organisation has raised more than $3.5 million (Dh12.8m) in support of over 50 children’s charities.
Noor Dubai Foundation
Sheikh Mohammed bin Rashid Al Maktoum launched the Noor Dubai Foundation a decade ago with the aim of eliminating all forms of preventable blindness globally. You can donate Dh50 to support mobile eye camps by texting the word “Noor” to 4565 (Etisalat) or 4849 (du).
In numbers: China in Dubai
The number of Chinese people living in Dubai: An estimated 200,000
Number of Chinese people in International City: Almost 50,000
Daily visitors to Dragon Mart in 2018/19: 120,000
Daily visitors to Dragon Mart in 2010: 20,000
Percentage increase in visitors in eight years: 500 per cent
THE SPECS
Engine: 6.75-litre twin-turbocharged V12 petrol engine
Power: 420kW
Torque: 780Nm
Transmission: 8-speed automatic
Price: From Dh1,350,000
On sale: Available for preorder now
The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
