Inc42 | 22 May 2023
During the peak pandemic years of 2020 and 2021, the investment bull run only provided a short-lived respite for the players operating in the country’s ecommerce market pegged to reach $400 Bn by 2030. This is because, in the aftermath of the pandemic, founders burned through hefty amounts of investor capital to boost revenues and acquire customers in a world that was returning to business as usual.
The situation became dire when the market was hit by a fall in consumer discretionary spending on the back of an uncertain job market, a rise in interest rates, and fears of an impending recession. The balance sheets of these players became the witnesses to this series of unfortunate events, which constantly challenged their unit economics and stability prospects.