Indian eCommerce giant, Flipkart, has now completed the deal of acquisition with the online auction site eBay India. With this, eBay.in will now be a Flipkart Group company.
Though Flipkart will own and operate eBay.in with immediate effect, the latter will function as an independent entity even as the two firms explore opportunities in cross-border trade, the press note added.
The deal was announced earlier in April when the Flipkart group raised USD 1.4 billion from global technology majors eBay, Tencent and Microsoft.
In exchange for an equity stake in Flipkart, eBay had made a cash investment of USD 500 million and sold its eBay.in business to Flipkart.
eBay said in the statement, “Effective immediately, Flipkart will own and operate eBay.in. Additionally, the companies are moving forward to jointly pursue cross-border trade opportunities to make eBay’s global inventory accessible to more India consumers, while eBay’s millions of active buyers globally will have access to a unique Indian inventory provided by Flipkart.”
The announcement comes a day after smaller rival Snapdeal said it was terminating all discussions of a potential merger. While Snapdeal did not name Flipkart, it had been widely reported that both were negotiating a merger for the last five months.
The two entities have also signed a cross-border trade agreement, aimed at facilitating expansion into the global e-commerce market. As per the agreement, Flipkart customers will be offered access to a wide range of global brands available on the eBay platform. On the other hand, customers of eBay will have access to Indian products.
Commenting on the development, Flipkart CEO Kalyan Krishnamurthy said, “I’m delighted to welcome eBay.in, its employees, sellers, and partners into the Flipkart family. Being an early mover, eBay.in has a unique standing in the Indian e-commerce market, which is a great addition to Flipkart’s leadership position. Our coming together directly benefits Indian customers and sellers for whom we want to provide the best possible e-commerce experience. This is a step in that direction.”