South African media conglomerate Naspers upped its stakes in Indian e-commerce platform Flipkart to 16% with an additional investment of $71 million in April this year, as according to a report in The Economic Times.
The business media platform quoted the annual financial report filed by Naspers.
“The additional interest was acquired from existing shareholders of Flipkart. Following the investment, the group holds a 16% interest in Flipkart on a fully-diluted basis,” according to the financial report.
Naspers puts the Indian online retail market size at $50 billion by 2020 and believes that Flipkart is currently the market leader in India with a monthly gross merchandise value (GMV) at roughly 57% in March, up from 45% in June last year.
According to another business paper Mint, Amazon had disputed Flipkart’s claims of market leadership.
An Amazon India spokesperson said in an email to Mint:
“Based on standardized monthly reports, we know for sure that we are leaders on things that matter to customers and sellers. As there are no credible third-party sources for segment share, we do not comment on speculations. In the last four years since starting our India operations, we have transformed the e-commerce landscape in India through our global and local customer and seller focused innovations to make e-commerce a part of customers’ daily lives and beyond metro phenomenon. With an industry-leading selection of over 100 million products offered by over 2 lakh (200,000) sellers, loyalty programs like Prime, order delivery to 97% serviceable pin codes in India till date, 75% of new customers coming from non-metro geographies and a significantly faster than industry growth rate of over 85% YoY in Q1 2017, Amazon is shaping the future of e-commerce in India.”