Jeff Bezos-led Amazon has become the largest online retailer in India. Seattle-based e-commerce marketplace has beaten local online retailer Flipkart in gross sales, according to a Barclays report.
Amazon generated around $7.5 billion in gross sales in comparison to $6.2 billion by Flipkart, excluding GMV of its subsidiaries Myntra and Jabong, in the year ended March.
However, Indian rival, in terms of revenue ($3.8 Bn) is bigger than Amazon ($3.2 Bn), added the report. Flipkart is double the size of US e-tailer in the wholesale business. Flipkart also maintains that it is the undisputed leader at home turf.
Bezos’s firm is also catching up with its rival and growing at a faster rate to make up for its slow business-to-business operations.
India is considered to be the next big battleground for e-tailers around the world. US retailer and Amazon rival Walmart, to seize the opportunity, had bought a 77 per cent stake in Flipkart for $16 billion.
The report has come at a time when Flipkart is going through a tough time. This month its group CEO Binny Bansal resigned following a personal misconduct allegations.
Whereas Amazon in last two years have adopted the more aggressive approach and consolidated its operations. In India, Amazon has committed to invest around $5 billion. This year alone, Amazon has infused about Rs 7,250 crore in this unit across three tranches.
Till date, it has invested Rs 25,090 crore into its Indian marketplace business.
The report further said that the e-commerce market in the country will be doubled to $40-50 billion in the next two years. Online shoppers are expected to climb to 200 million by that time from 90 million.
In the ongoing financial year, Amazon is expected to rise to $11.2 billion, 30 per cent more than Flipkart estimate of $8.7 billion in gross sales, said the report. Both firms combined losses are expected to go by $3 billion in FY19, Amazon is expected to contribute $1.8 billion and Flipkart $1.3 billion.
To Read Our Daily News Updates, Please Visit Inventiva Or Subscribe Our Newsletter & Push.