Taking a contrarian view on “capital dumping” and calls of protectionist government policies, Paytm Founder Vijay Shekhar Sharma on Thursday dismissed such demands of some Indian e-commerce players as a business tactic. He said that some e-commerce players complained about capital dumping by foreign giants such as Amazon and Uber even though many of these were funded by global investors.
A few months ago, founders of Flipkart and Ola called for government protection from rivals Amazon and Uber.
While Amazon has allocated around $5 billion for investments and expansion in India, Uber is putting all its resources in business here after getting out of the China market. Sharma indicated that e-commerce players with a lighter purse tend to cry capital dumping and demand from the government to stop foreign players from investing more in their business in the country.
While Chinese technology giant Alibaba has pumped around $1 billion into Paytm, Japanese telecom major SoftBank has invested $1.8 billion in the mobile wallet. He added that it is the rule of business. “You optimise your tickets and then you play on that card. The same firm which is worried about ‘international companies’ is actually international, internationally funded and internationally-owned by shareholders,” he said at the India Economic Summit.