Bakshi: India's E-Commerce Sector is a Cash-Burning, Venture-Funded Bubble
Sanjay Bakshi · #3 Sanjay Bakshi: Why Mental Models · Sep 18, 2015 · at 19:58
Investor Sanjay Bakshi discusses how investor subsidies allow loss-making companies to prolong competitive price wars.
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“And we're seeing that in India. We have an e-commerce bubble going on. There are three or four players, and they are essentially giving huge discounts to consumers, to purchase their products, and to not go to bricks and mortar stores, and people are doing that. But all of these e-commerce companies, they are bleeding cash, but they have rich investors who are willing to give them money to, ah, to gain market share. And as long as that money keeps on coming, it's going to be very difficult for the bricks and mortar players to be able to effectively compete.”
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