India’s e-commerce shakeout deepens: Flipkart, Amazon surge as mid-tier brands fade

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India’s e-commerce market is consolidating around a few giants. Flipkart and Amazon now control nearly 80% of total marketplace GMV, with newer vertical challengers like Meesho, Myntra, and Nykaa gaining ground through hyper-targeted, Gen Z–first strategies. The winners are not just acquiring users—they’re monetising better. Flipkart and Amazon Seller Services both posted significant loss reductions in FY25, while Myntra’s profit grew nearly 18X. Advertising is the real multiplier. Flipkart’s ad revenue nearly doubled YoY, and Amazon’s rose 72%.

Meanwhile, Snapdeal and Tata CliQ—once poised as differentiated challengers—are scaling back. Snapdeal’s losses halved but revenue continues to shrink. Tata CliQ’s revenue has fallen 70% over three years, despite cost-cutting. For both, advertising remains a negligible revenue stream, signalling low platform engagement. In a market shifting from deep discounting to discovery commerce and trust signals, that’s a red flag.

For marketers, the lesson is clear: scale isn’t just about reach—it’s about influence. Leading platforms are turning consumer data into profitable media engines. Smaller players risk becoming logistics brands, not experience brands. With younger consumers favouring visual-first platforms, discovery journeys, and trust-backed marketplaces, mid-tier platforms must reframe their marketing moats—not just their price points.