Published
Aug 2, 2017
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Flipkart completes its merger with eBay India

Published
Aug 2, 2017

After last week’s merger, eBay India will now be a Flipkart Group company, finalising the deal that was announced in April.

Flipkart and eBay India's merger finally entered completion after talks began last April - Flipkart- Facebook


After Flipkart had raised 1.4 billion dollars from Tencent, Microsoft, and eBay last April, eBay exchanged its eBay India company and an investment of around 333 crore rupees (approximately 500 million dollars) for an equity stake in Flipkart. The merger’s completion was announced just after it became clear that Flipkart’s bid to buy Snapdeal would not go through.

The business eBay India started operations in 2004 after acquiring the former entity Bazee. There was never the aggressive fundraising for eBay’s Indian operations as for other e-commerce entities such as Flipkart and Snapdeal and so it failed to reach such a high level of popularity as they did. Flipkart now has the highest revenue for e-commerce in India and is now attempting to take over as much of the market as possible. Kalyan Krishnamurthy, Flipkart’s CEO, said of the mrerger, “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.”

In an official statement, Flipkart said, “Effective immediately, Flipkart will own and operate eBay.in, which will remain in independent entity as part of Flipkart.” The statement also mentioned that the two companies will also work together to leverage opportunities in trade across borders. In this way, the agreement will open up possibilities for Flipkart sellers to expand their reach internationally. 

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