Amazon races ahead Flipkart in India

Amazon overtook Flipkart in India for the FY18. Barclays reported that Amazon’s Gross Merchandise Value (GMV) was US$7.5 billion compared to Flipkarts US$ 6.2 billion, for the calendar year ending 31st March 2018.

Flipkarts data is inclusive of Myntra and Jabong. However in terms of revenue Flipkart is still leading Jeff Bezos’s Amazon. Flipkart’s revenue stood at US$3.8 billion vs Amazon’s US$3.2 billion. US giant Walmart earlier this year picked up 77% stake in Flipkart.

[Gross Merchandise Value is the total value of merchandise sold-overall sales prior to the deduction of any fees or expenses]

The report also said that Amazon is growing at 82% year on year compared to Flipkart’s 47%.

During the recent Diwali sales (Big Billion Days) Flipkart maintained a 70% market share when compared to Amazon.

After Flipkart was sold to Amazon’s rival Walmart, Amazon pumped in more money in its India operations. This year alone the company invested US$1 billion, taking the entire investment to US$3.5 billion.

India’s online retail business would reach $40-45 billion by end of 2020. The number of consumers would double from 90 million to 180 million.

The growth factor for the e-commerce industry is huge. Every global company would want to be part of India’s growth story.