Flipkart completes merger with eBay India
India's largest e-commerce marketplace Flipkart on Tuesday said that its merger with eBay India was complete. With the completion of this merger transaction, eBay.in is now officially a Flipkart Group Company.
The deal was announced in April when the e-commerce major, Flipkart, raised $ 1.4 billion from global technology majors eBay, Tencent and Microsoft. eBay had made a cash investment of $500 million sold its eBay.in business to Flipkart in exchange for an equity stake in the company.
"I am 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," said Flipkart CEO, Kalyan Krishnamurthy.
A statement from Flipkart said that the company will immediately and effectively own and operate eBay.in. It added that eBay.in will remain an independent entity as part of Flipkart and that the companies will partner to explore opportunities in cross-border trade.
"As a result, Flipkart customers will get expanded product choices with the wide array of global inventory available on eBay while eBay customers will have access to a more unique Indian inventory from Flipkart sellers. The partnership will, therefore, provide an opportunity to sellers on Flipkart's platform to expand their sales globally," said a statement from Flipkart on Tuesday.
The announcement of the merger comes as a day after rival e-commerce marketplace, Snapdeal called off talks of a merger with Flipkart without naming the company.