- 11 April 2017
- Transport / Logistics Services
eBay India has been bought by the Flipkart Group, after the online retailer Flipkart announced it had received $1.4bn in investment from the three global tech giants eBay, Tencent and Microsoft.
In a statement posted on Flipkart’s official blog, Sachin Bansal and Binny Bansal, founders of Flipkart, said: “We are delighted that Tencent, eBay and Microsoft — all innovation powerhouses — have chosen to partner with us on their India journey. We have chosen these partners based on their long histories of pioneering industries, and the unique expertise and insights each of them bring to Flipkart. This deal reaffirms our resolve to hasten the transformation of commerce in India through technology.”
The Flipkart statement continued, “The investment by eBay is accompanied by a strategic commercial agreement with Flipkart. In exchange for an equity stake in Flipkart, eBay is making a cash investment in and selling its eBay.in business to Flipkart. eBay.in will continue to operate as an independent entity as a part of Flipkart.
“Flipkart and eBay have also signed an exclusive cross-border trade agreement, as a result of which customers of Flipkart will gain access to the wide array of global inventory on eBay, while eBay’s customers will have access to unique Indian inventory provided by Flipkart sellers. Thus, sellers on Flipkart will now have an opportunity to expand their sales globally.”
The investment and tie-up with eBay will presumably give Flipkart a fillip for its ongoing tussle with Amazon in the Indian e-commerce market. Flipkart is allegedly considering plans to buy the other member of India’s big three e-commerce players, Snapdeal – but there was no mention of this in yesterday’s official blog post.
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