- 1 August 2017
- Transport / Logistics Services
While Flipkart has tried and failed to buy out Indian rivals Snapdeal it has been quietly fleshing out a deal with eBay, which the companies have announced has been completed today.
Flipkart and eBay announced plans to work together back in April this year. Earlier this week, the two companies published an update on these plans, that say that they have ‘completed their transaction’.
According to the statement posted on eBay’s website: “In exchange for an equity stake in Flipkart, eBay has made a $500 million cash investment in and sold its eBay.in business to Flipkart.
“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 more unique Indian inventory provided by Flipkart.”
This is a welcome move for eBay to establish a position of strength in the India e-commerce sector, and for Flipkart which is under pressure from the global giant Amazon. A deal with Snapdeal would have given it strength against its US rival, but the eBay partnership should insure survival in the face of Amazon’s online onslaught. It remains to be seen how the emerging market changes in the coming years with the ecosystem working as it is.
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