According to RedSeer, Indian e-tailers generated record sales of $3.2 billion during the recent festival sale season, 45% higher than the $2.2 billion in last year’s festival season. It was fuelled by an estimated expense of $370-$400 million compared to $200-$250 million last year, as well as better Internet penetration. Although Amazon is rapidly closing the gap, Flipkart continues to lead the market and is now looking to expand vertically through more acquisitions. 

Flipkart’s Financials

Flipkart had revenue of $2.3 billion in fiscal 2016, up over 50% to $2.3 billion. Losses shot up 75% to $780 million.

During the recent festival season, Flipkart’s GMV is estimated to be INR 4,300-5,000 crore ($663-771 million), up from INR 2,300 crore ($354 million) last year while Amazon’s GMV is estimated to be INR 2,500-2,700 crore ($385-$417 million), up from INR 1,800 crore ($280 million) last year.

For the Big Billion Day sale, a five-day sale held around Dusshera and Diwali festivals, Flipkart extended its services to over 250 new towns and villages in India. As a result, it claims a 1000% increase in orders from remote locations like Kashmir, Arunachal Pradesh, and Mizoram. About 60% of its customers are from metros and tier-1 cities and 40% from tier-2,3, and 4 towns and villages.

For Amazon India, about 86% of its new customers come from small towns. This year, it invested $62.7 million in its Indian logistics arm Amazon Transportation Service (ATS) and about $20 million in its digital payments arm Amazon Pay India.

Amazon India posted revenue of INR 2,275 crore ($341 million) and losses of INR 3,571 crore ($530 million) in fiscal 2016.

As per a report prior to the festival sale, Flipkart, including Myntra, had a GMV market share of 38.5% in 2016-17, down from 40% in 2014-15, while the market share of Amazon India surged to 29% from 12%. Following the festival, market share estimates suggest Flipkart has 40%-42% and Amazon 30%-32%.