According to a report by Citi Research released last week, ecommerce giant Amazon India has been valued at $16 billion right now is expected to reach $70 billion in gross merchandise volume (GMV) and $11 billion in net sales by 2027.
The development comes a week after US-based retail major Walmart acquired majority stake in homegrown ecommerce player Flipkart, valuing the company at about $20 billion.
“We believe the India ecommerce market will grow at a 21% CAGR over the next 10 years to $202 billion, that Amazon could capture 35% of this market and that the company could generate more than $10 billion in revenue and nearly $1.5 billion in FCF (free cash flow) by 2027,” said the Citi Research report.
This huge figure in valuation makes Amazon India the second-most valued internet business in the country after it’s rival Flipkart. However, in this case the valuation is not based on transactions as in Flipkart-Walmart deal.
Amazon generates business in India through through commissions, advertisements and shipping fees. Amazon’s chief Jeff Bezos had pumped in $5 billion in its Indian arm ealier this year to push the business.