South Africa based conglomerate Naspers has made an additional investment of $71 million in online marketplace Flipkart in April 2017, increasing its shareholding to 16%, as per the annual financial report filed by the company.
As the financial report filed by Naspers stated that the group’s Indian etail associate, Flipkart, remains a large opportunity, with market estimates expecting the online retail market in India to reach US$50bn by 2020. Competition has intensified in the past year, with Amazon gaining market share in the early part of the year. Flipkart has maintained its leadership position, with recent market share trends suggesting gains.
The group invested US$71m for an additional interest in its associate Flipkart Limited (Flipkart) in April 2017. The additional interest was acquired from existing shareholders of Flipkart. Following the investment, the group holds a 16% interest in Flipkart on a fully diluted basis.