- Amazon.Com, Inc AMZN pulled behind Walmart Inc WMT in India’s battle for online consumers.
- Despite criticism from analysts, Walmart’s $16 billion deal in 2018 for a 77 percent stake in Flipkart appears to be bearing fruit.
- Flipkart’s valuation rose to $38 billion in 2021 after the company raised an additional $4.8 billion in equity, including an undisclosed additional amount from Walmart and investments from Softbank Group Corp SFTBF SFTBY by Japan and Singapore’s sovereign wealth fund GIC, Financial Times reports.
- According to Bernstein, e-commerce sales in India are expected to triple to $135 billion between 2020 and 2025.
- India became a key battleground for Walmart and Amazon as both struggled to compete in China against local players like Alibaba Group Holding Limited BABA.
- According to Redseer, Flipkart has grown faster than Amazon in India.
- Redseer pointed to Amazon’s significant gap with Flipkart and expects it to grow, making it difficult for them to bridge, at least in the short term. Amazon has dismissed Redseer’s observations.
- Industry observers recognized Flipkart’s niche in smaller cities with a wide range of inexpensive goods and offerings like Shopsy to target budget-conscious shoppers with extremely affordable products. It also owns Myntra, a popular online fashion store.
- Thanks to Prime, Amazon has gained popularity among wealthier urban Indians. But it lags behind Flipkart in categories like mobile phones, fashion, electronics and home appliances, which Redseer said accounted for about 70% of India’s online retail market by 2022.
- Price promotion: WMT shares were trading 0.13% higher at $150.10 at the last check on Monday premarket.
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