Something strange is happening in Indian e-commerce space – suddenly there is a flow of fund (few announced, quite a few not announced).

Funded startups are moving away from niche play to the same-old generic play (i.e. you can buy anything). Maybe some of them are forced to (by existing investors), or have hit the ceiling in their respective niche category (really?).

Few VCs are investing in competing startups (after all, everybody is competing with each other, as they all are selling the same stuff – mobiles, laptops, consumer electronics etc).

And that makes one wonder if Indian VCs are hedging their risk in e-commerce space? (and will force consolidation later?).

As founder of a startup, how comfortable would you be to see your investor investing in a competing company, looking at your quarterly numbers, your growth category and most importantly, looking at your future plans?

What’s your take/observation vis-a-vis the recent funding in ecommerce space. Also, what has changed in E-commerce space (so suddenly) that VCs have started showing so much of interest?

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