Published on : Jun 28, 2017
Naspers, the media conglomerate based in South Africa, has invested an additional amount of US$71 mn in the online retail giant, Flipkart in April 2017, which led to an increase in its stake in the e-retailer to 16%. The added interest was procured from the existing shareholders of Flipkart, stated the financial report of Naspers. The report, however, does not reveal the name of the investor/s, who peddled the shares.
Among the leading online retailers in India, such as Snapdeal and Amazon, Flipkart accounts for nearly 58% of the overall market in terms of the gross merchandise value (GMV), maintaining its dominant position, even though Amazon has captured some of its shares early this year. In June 2016, Flipkart registered a share of 45% in the overall market, states the report.
Indian Online Retail Market to Reach US$50 bn by 2020
According to Naspers, the opportunity in the Indian market for online retail is likely to reach US$50 bn by 2020. The company acquired a 10% stake in Flipkart for US$102 mn in 2012, marking its first investment in the retail firm. Afterward, the company has been increasing its investment in Flipkart. For instance, it invested US$140 mn in 2013 and US$293 mn in 2014. The company did not participate in 2015’s fund-raising rounds.
Currently, Flipkart stands at US$11.6 bn with the latest investments from Tencent, eBay, and Microsoft. The e-retailer is also in talks to procure Snapdeal with the financial assistance from SoftBank.