Jeff Bezos led global e-commerce giant Amazon has beaten the Indian-origin competitor Flipkart in terms of gross sales (GMV), according to a Barclays report. While Amazon turned $7.5 billion in gross sales in the year ended in March, Flipkart, on the other hand, generated just $6.2 billion in the same year.
The report does not include sales from Flipkart’s subsidiaries like Jabong and Myntra. Amazon entered Indian markets five years after the launch of Flipkart and has now taken over the firm’s first mover advantage.
However, if we discuss the revenues of both the giants, Flipkart is ahead of Amazon. Flipkart managed to grab $3.8 billion in revenues compared to Amazon’s $3.2 billion. According to Barclay’s report, Amazon has witnessed an 82 per cent growth in its revenue which is almost two times compared to 47 per cent growth of Flipkart. Amazon could soon beat Flipkart in revenue as well if the trends continue to follow.
Amazon was launched in 2013 in India and Jeff Bezos pumped in billions of dollars for the expansion into the Indian market. Media speculated at the time that Amazon may easily beat its ex-employees founded rival. However, Sachin and Binny Bansal founded firm managed to raise funds and compete with the biggest online retailer in the world for quite some time. During the Big Billions Day sale, Kalyan Krishnamurthy, CEO of Flipkart claimed that the firm would alone caputure70 per cent of the Indian market during the festival.
However, Amazon has finally gained pace. According to the report, it was not easy for Amazon to compete in the Indian market. It made losses worth $1.8 billion for a whole year whereas Flipkart lost only $1.3 billion.
Amazon is expected to have a pool of unlimited resources. However, after Walmart acquired Flipkart, the Indian player too managed to pool enough funds to manage its ever-growing losses. Walmart is Amazon’s biggest competitor in the United States.