Flipkart maintains its edge over Amazon with 57% market share in March 2017, claims Naspers
Naspers invested $71 million for an additional stake in Flipkart in April 2017
Flipkart, India's largest e-commerce company, has witnessed a marked improvement in its market share in the nine month period to March 2017. Naspers, one of the key investor in Flipkart, said the Bengaluru-headquartered company maintained its leadership position, with recent market share trends suggesting gains.
Announcing its consolidated financial results for the year ended March 2017, Naspers said Flipkart's market share improved to around 57 percent in March 2017 from 45 percent in June 2016.
The company attained higher market share after it raised $1.4 billion at a valuation of $11.6 billion earlier this year, while sales numbers of fashion arms Myntra and Jabong since September 2016 also contributed to the improved performance.
Flipkart, remains a large opportunity, with market estimates expecting the online retail market in India to reach $50 billion by 2020. Competition has intensified in the past year, with Amazon gaining market share in the early part of the year, Naspers said in a financial statement.
In fact, Naspers invested $71 million for an additional stake in Flipkart in April 2017. The additional interest was acquired from existing shareholders of Flipkart. Following the investment, the group holds a 16 percent interest in Flipkart on a fully diluted basis, Naspers said.
Going back, Naspers made its firs investment in Flipkart in 2012 when it acquired a 10 percent stake in the company by infusing $102 million. Naspers maintained its investment pace in Flipkart, and subsequently invested $140 million in July 2013 and $293.3 million in 2014. However, the South Africa-based multinational internet and media group firm with a market capitalisation of $66 billion did not participate during Flipkart's fund-raising exercise in 2015.
Although Indian online retail market is still in a nascent stage, both Flipkart and Amazon are looking to outdo each other because of their strong financial position. Flipkart is also currently engaged in talks to acquire Snapdeal's business in a move aimed at further strengthening its position and retain its edge over the number two player Amazon.
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