Walmart Scores In India Vs Amazon Thanks To Its Flipkart Deal: Report

Amazon.Com, Inc AMZN trailed behind Walmart Inc WMT in India's battle for online consumers.
Despite analyst criticism, Walmart's $16 billion deal in 2018 for a 77% stake in Flipkart seems to bear fruit.
Flipkart's valuation surged to $38 billion in 2021 after it raised another $4.8 billion in equity, including an undisclosed additional amount from Walmart and investments by Softbank Group Corp SFTBF SFTBY of Japan and Singapore's sovereign wealth fund GIC, Financial Times reports.
Indian e-commerce sales will likely triple to $135 billion from 2020 to 2025, according to Bernstein.
India became a key battleground for Walmart and Amazon as both struggled to compete in China against local players like Alibaba Group Holding Limited BABA.
As per Redseer, Flipkart has grown more quickly than Amazon in India.
Redseer flagged Amazon's significant gap with Flipkart and expects it to increase, making it difficult for them to bridge it, at least in the short term. Amazon has snubbed the observations by Redseer.
Industry watchers acknowledged Flipkart's niche in smaller towns and cities with a wide assortment of inexpensive goods and offerings like Shopsy to target value-conscious buyers with highly cheap products. It also owns Myntra, a popular online fashion store.
Amazon has gained popularity with wealthier urban Indians on the back of Prime. But it lags behind Flipkart in categories like mobile phones, fashion, electronics, and appliances, which accounted for ~70% of the Indian online retail market in 2022, according to Redseer.
Price Action: WMT shares traded higher by 0.13% at $150.10 premarket on the last check Monday.
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Photo via Wikimedia Commons

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