economy// It is still a small component of India’s Rs. 38 trillion ($600 billion, roughly Rs. 38,08,200 crores) overall retail trade industry. Yet, the e-commerce format with sales of Rs. 1 trillion ($16 billion, roughly Rs. 1,01,552 crores) managed to create a buzz in 2014 like never before - not just with mega promotions but also with mergers, acquisitions and some crazy valuations.

Data on Internet penetration in India backs the scales of operation. There are currently some 250 million Internet users in the country. As per various estimates, the e-commerce industry, now valued at $16 billion, is growing at 30-40 percent each year and will top $100 billion (roughly Rs. 6,34,700 crores) in the next five years.

Going forward, experts expect several developments in the online retail space. Besides logging a 40-45 percent annual growth, they feel huge investments will flow into logistics to overcome the challenges of last-mile reach. They also expect large retail chains of Reliance Industries and the Aditya Vikram Birla Group, among others, to go online.

Experts also predict some initial public offerings in the near term not just because existing investors will seek to realise value but also since the online retail industry will need funds for infrastructure, logistics and warehousing estimated at $500 million now and 1.9 trillion by 2017.