Even though investors are vary of their valuations, and customer complaints continue to rise, India’s top two e-commerce players, Flipkart and Snapdeal, have both reported strong numbers in terms of growth in sales and GMVs.
While Flipkart recorded a 150% jump in unit sales so far in 2015, compared with the year-ago period, Snapdeal on the other hand recorded a massive 222% jump in gross merchandise value (GMV) in the April-June quarter, as per Investor report on SoftBank’s website.
In a statement issued today, Flipkart said,
With a growing base of over 30,000 sellers, customers now have access to a wider range of products available across categories and geographies. New categories like home and furnishing, maternity, etc., teamed with innovative last-mile delivery initiatives have done extremely well since its launch.
India’s largest e-commerce player is eyeing as many as 1 Lakh sellers on its platform, by the end of this year. However, Flipkart did not disclose numbers related to GMV, though you can expect them o be higher than unit sales growth figures, as is usually the case.
As for Snapdeal, apart from the 222% GMV growth, the over $5 Billion valued e-commerce company is also looking to expand its 100K strong seller network, with a further rise in GMVs.
However, even though there is a staggering rise in sales for both Flipkart and Snapdeal, analysts (and even a few investors) have warned of a slowing growth in online businesses. More so than slowing growth, investors have specific concerns regarding the soaring valuations both of these e-commerce brands have tagged themselves too. Just to revise you with numbers, according to multiple reports, Flipkart is now valued at $15 Billion, while Snapdeal sees itself valued at $5 Billion.