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Amazon India is worth what Walmart paid for its Flipkart Stake


image credit : Flickr via CC License

According to a new analysis from the highly recognized financial services firm Citi Research, Amazon's Indian unit has been valued at a huge $16 Billion which comes as the same price Walmart paid for a 77% stake in India's largest e-commerce unit Flipkart at a valuation of over $20 Billion dollars.

This makes Amazon India just $4 Billion shy of Flipkart's huge $20 Billion+ valuation and proves that Amazon is in for huge competition with the company in the Indian e-commerce space which is slated to grow heavily in the upcoming years making a huge win for those who achieve huge market share right now.

Citi’s senior analyst Mark May and Hao Yan stated in the report that Amazon is expected to reach sales of $70 Billion worth of gross merchandise volume and achieve over $10 Billion in revenue in just 9 years time from the country, Amazon is predicted to capture 35% of the e-commerce market in India according to this detailed analysis.

India's e-commerce market is slated to top $200 Billion in just 8 years time with the country currently having 500 million+ internet users, A huge part of the total shop online for different goods and services and with the continuous growth of the Indian Economy, We can expect consumer spending to reach a very high rate in a short period of time with India also slated to be the third largest consumer economy after U.S. and China in due time.



Amazon also has a burgeoning cloud business which will grow heavily in the country as it has in its main base of operations in the United States, with more internet users and more data, internet content
 and huge internet companies springing up in India, Enough space will have to be made for the hosting and storage of all this data which is something Amazon's Web Services is very good at, We should also expect Indian companies and startups getting into this field and growing very heavily, If not bigger than Amazon's in the country with both parties profiting heavily.

Amazon and India itself as a country is slated to heavily grow in the digital economy sector, hugely increasing innovation and benefiting the country heavily making it a major player in the global economy and the technology industry worldwide.

Amazon will also have to compete with other American companies who will also want to grab huge market share in India's e-commerce industry through investments or setting up of subsidiary companies, Other retailers who have experienced Amazon cutting through a huge part of its revenues will also want to make up for it and also go head-to-head with the company by investing in rapidly growing e-commerce industries in other regions with South East Asia being a very notable one.


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