India’s largest online retailer Flipkart is showing early but clear signs of sustaining the turnaround that began with its win over arch-rival Amazon India during the Big Billion Day (BBD) sale in October, belying predictions of many investors and analysts who thought Amazon may run away with India’s $14-15 billion e-commerce market.

Flipkart Internet Pvt. Ltd pulled in gross sales of more than Rs2,600 crore in both December and January on the back of bumper sales of smartphones, said two people familiar with the matter. Amazon (Amazon Seller Services Pvt. Ltd) generated gross sales of roughly Rs2,300 crore, on average, in these months, said two other people familiar with Amazon’s numbers. If sales at Flipkart’s fashion units Myntra and Jabong are included, the company is far ahead of Amazon. Gross sales reflect the value of goods sold on the site, before product returns.

Monthly sales at Flipkart over the past two months have increased sharply from the Rs2,000 crore levels they hovered around in the months before BBD. Amazon had overtaken Flipkart in terms of gross sales (on a standalone basis) in at least two months before the BBD.

“As a policy, we do not comment on sale numbers. However, as a market leader, we continue to grow the e-commerce market in India through India-centric innovations and by continuously improving customer experience. We are focused on delighting our customers across the length and breadth of the country by bringing the best selection of quality brands and products at affordable price points,” said a Flipkart spokeswoman in response to queries from Mint.

Flipkart’s performance sets it up for a much-needed fund raising, which had looked improbable last year given Amazon’s ascent and a series of markdowns by its own investors.

“With Amazon’s unrelenting focus on providing the best customer experience to the Indian customer through investment in technology, infrastructure and innovation, we saw growth of 124% in 2016 vs 2015. We continued to see this momentum in January and’s first Great Indian Sale in January 2017 set new benchmarks in daily units, showing a 200% growth over normal business day. One out of two orders were placed by Amazon Prime members.

“We have continued to expand our programmes such as Amazon Pantry, now available across 13 Indian cities and Amazon Now that is available in four cities of Mumbai, Delhi, Bangalore and Hyderabad,” said an Amazon India spokeswoman on Thursday.