Flipkart: Can it Ride out the Fund Crunch?

In 2016, the Indian e-commerce industry was growing at 35% CAGR and the size of industry was estimated to be $16 billion. Morgan Stanley, a US-based bank, in its report estimated that the size of Indian e-commerce would touch $119 billion by 2020. Morgan Stanley attributed the growth to the internet penetration (from 32% in 2015 to 59% in 2020) and rise in per capita income, which was estimated to double by 2025. It also estimated that India would have almost 320 million online shoppers by 2020 compared with 50 million in 2015.

But there were challenges. Poor road network, inadequately financed sellers, payment systems, and consumers reluctant to go in for online transactions were some of the issues ailing the industry..