South Korean e-commerce behemoth Coupang plans to enter the Indian market. SoftBank-backed start-up has begun talks with the Indian government about entering one of the world's largest e-commerce markets, according to government officials.

"We have received an application from the South Korean government, in which Coupang has expressed interest in entering India," officials stated, adding that "discussions with the Coupang delegation are likely to begin next month."

If the Seoul-based company, also known as "Amazon of South Korea," enters India, it will compete directly with both homegrown Flipkart and Amazon's Seattle headquarters.

Despite their success in the Indian market over the last decade, the two behemoths are facing competition from the government-backed ONDC and other homegrown e-commerce platforms such as Reliance's JioMart and Tata Digital.

India is quickly emerging as a lucrative e-commerce market, but it is still considered underserved. According to the FIS 2023 Global Payments Report, it is expected to grow from $83 billion in 2022 to $150 billion in 2026.

Flipkart ($23 billion GMV) and Amazon ($18-20 billion GMV) are at the top of the scale, with the two controlling roughly 60% of the market. According to research firm Berstein, Reliance is third in e-commerce sales with $5.7 billion, driven by attractive fashion (Ajio) and JioMart (e-grocery).

Coupang's proposal comes a year after the company announced plans to close its Japanese operations. According to a March 2022 report in The Korean Times, the company decided to withdraw from Japan 21 months after it began offering its online delivery service there.