After an extended period of investing in Indian start - ups , investor expectations have waned , as dreams of significant online commerce are hit by market failures but still - distant growth . two of India 's best known e - commerce retailers , Flipkart and Snapdeal , have posted significant losses , as they compete for increasing sales through deep discounts . Prime Minister Modi 's effort to provide a four - year , $ 1.5bn government fund to help start - ups is seen as a drop in the ocean . Bank of America predicts that e - commerce will surge to $ 220bn by 2025 up from about $ 11bn last year . Most of India 's tech start - ups are generating losses , following a demand - driven business model to generate revenue from customers that buy and sell goods and services .
After an extended period of investing in Indian start-ups, investor appetites have waned, as dreams of significant online sales are hit by soaring valuations but still-distant profits. Two of India's best known e-commerce retailers, Flipkart and Snapdeal, have posted significant losses, as they compete for increasing sales through deep discounts. Prime Minister Modi's effort to provide a four-year, $1.5bn government fund to help start-ups is seen as a drop in the ocean. Bank of America predicts Indian e-commerce will surge to $220bn by 2025 up from about $11bn last year. Most of India's tech start-ups are generating losses, following a discount-driven business model to generate revenue from customers that buy and sell goods and services.