"Broadly, it is a nice way to raise capital using these options," Vellody told IANS.

"The e-commerce trend is two-pronged. There is this increase in velocity toward gaining scale and the second is the mix of business models. I guess there will be two types of business models -- generalists and specialists."

The data on Internet penetration in India is there to back the scales of operation.

There are currently 243 million Internet users in the country and, as per various studies, the e-commerce industry is growing at 38 percent annually. Analysts expect the market size, now at $15 billion, to touch $100 billion in the next five years.

It may come as a surprise, but according to a report of the commerce ministry-promoted India Brand Equity Foundation (IBEF), India has around one million online retailers -- small and large -- which sell their products through various e-commerce portals.

These online retailers have started using mobile apps to increase their reach. Several e-commerce firms such as SnapDeal, Myntra, Flipkart and Jabong are launching their mobile apps. Some have set aside huge funds to acquire companies in mobile apps space.

The market is also set to expand fast since even some large traditional format retail companies, like Reliance Retail of India's largest private company Reliance Industries and the Aditya Vikram Group's chains, are planning to go online.

According to Japnit Singh, senior director, Spire Research and Consulting, Singapore and India, the Indian e-commerce industry is also all set to see a consolidation mode over the next five years.

"In the next five years there won't be too many players in the field left who will have the financial capability to survive. We do expect a lot of mergers of small players into the big players," Singh told IANS.

"Only two-three big players will survive."