Hotline: 1800 102 2007
Hotline: 1800 102 2007
Jul, 03 2018

Flipkart expects to treble GMV to $17.6 billion in 2020-21

Some experts tracking the ecommerce space, however, said Flipkart’s growth projection seems conservative in light of its acquisition in May by Walmart.

Flipkart expects to treble GMV to $17.6 billion in 2020-21

The online marketplace Flipkart's gross merchandise value, or gross sales, surged 51% to $6.2 billion in 2017-18, which Flipkart expects to nearly triple to $17.6 billion in 2020-21, according to people familiar with the company’s three-year outlook.

Amazon India, on the other hand, is expected to reach $17 billion in GMV in 2020 and $23 billion in 2021, according to a May report by Citi Research.

Some experts tracking the e-commerce space, however, said Flipkart’s growth projection seems conservative in light of its acquisition in May by Walmart.

“The reason why Amazon was able to grow fast in India was because of its global experience — having set processes, internal systems, etc.— which could be adapted for the Indian market,” said Rutvik Doshi, managing director at venture capital firm Inventus Capital Partners. “Flipkart has been entirely homegrown.

If the Walmart deal goes through, lots of practices and internal systems will get integrated. I expect (Flipkart’s) growth to accelerate at a much higher pace.”

Flipkart’s GMV growth had slowed drastically to 11% in 2016-17 from a 69% jump in the year before, as the domestic e-commerce industry went through a slump.

With growth rebounding and Flipkart expanding strongly in some categories, the company expects about 45% of its 2020-21 GMV to be contributed by mobile phones, at $7.4 billion, followed by large appliances and fashion at $2.7 billion and $2.6 billion, respectively.

Grocery, a recent category, is expected to contribute another $1 billion. Industry experts, however, anticipate grocery to begin contributing more to Flipkart’s GMV following its acquisition by Walmart, which is pending clearance from the Competition Commission of India.

Walmart is set to acquire a 77% stake in Flipkart for $16 billion, pegging the Indian company’s valuation at about $21billion.

Citi Research in its May report valued Amazon India’s business at $16 billion.

Flipkart declined to comment for this report. A spokesperson for Amazon India said the company does “not comment on speculations”.

The size of India’s e-commerce market is estimated to be around $20 billion, and increasing at a compounded annual growth rate of 30% for the next 5 years, according to analysts. The domestic online retail market is expected to grow to $45 billion by 2020 and $57 billion by 2021.

Flipkart’s standalone market share was estimated to be 31.9% at the end of 2017, according to a recent Forrester report, and Amazon India’s, 31.1%. The global e-commerce giant began operations in India about five years after Flipkart.

sharebtn
Comment
user
email
mobile
address
star
Related opportunities
  • E-Commerce & Related
    About Us: Aeora Rocks has made a name for itself in..
    Locations looking for expansion Maharashtra
    Establishment year 2017
    Franchising Launch Date 2019
    Investment size Rs. 2lac - 5lac
    Space required -NA-
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Borivali west Maharashtra
  • Facility Management
    About Us: GD Water Consultants mission is to be dedicated to..
    Locations looking for expansion Delhi
    Establishment year 2013
    Franchising Launch Date 2019
    Investment size Rs. 5lac - 10lac
    Space required -NA-
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • Quick Service Restaurants
    About Us: Tandoori Hut is an upmarket of Unique Soya Products..
    Locations looking for expansion Delhi
    Establishment year 2016
    Franchising Launch Date 2019
    Investment size Rs. 10lac - 20lac
    Space required 300
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • Facility Management
    About Us: Favorz is into 360 degree cleaning service which primarily..
    Locations looking for expansion Haryana
    Establishment year 2015
    Franchising Launch Date 2019
    Investment size Rs. 2lac - 5lac
    Space required 10
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater GURGAON Haryana
Insta-Subscribe to
Entrepreneur
Magazine
sme-80x109
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
email
mobile
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities