Flipkart acquires eBay’s India biz to fight Amazon
In 2007 alumni of the Delhi IIT-ians named Sachin Bansal and Binny Bansal, worked for Amazon.com, Founded Flipkart.com The biggest rivalry of Amazon in india .
As of April 2017, the company was valued at $11.6 billion and has become leading e-commerce market place with over 80 million products across 80+ categories.
Raises $1.4 billion and Acquires eBay India
Now in recent news you may have heard the largest ever fund raise in the Indian startup ecosystem, the biggest investment in Flipkart’s 10-year history from Tencent, eBay and Microsoft made investments aggregating to $1.4 billion in Flipkart.
But perhaps most exciting news is that it was to acquire eBay India. eBay, which is also a minority investor in Snapdeal, will invest $500 million in Flipkart. The Rs 9,000-crore deal is led by China’s Tencent with an investment of $700 million while eBay Inc will contribute $500 million and also receive Flipkart stock worth $200 million instead of its Indian operations. Microsoft will put in $200 million to round off the deal.
Flipkart and eBay have also signed an cross-border trade agreement, In 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 deal valued eBay’s India unit at $200-$250 million,eBay India will continue to operate its platform as a unit of Flipkart; it becomes the latest acquisition for Flipkart. eBay founded back in 1995, Today it is a multibillion-dollar business with operations in about 30 countries.
Flipkart's huge raise will give a boost to its position as it competition with Amazon, which has recently allocated $5 billion for the India market by offering Prime subscription service to Prime Video and even with categories like food and grocery.
EBay is hoping to recover lost ground through its latest deal with Flipkart.eBay will become a more active player in India, something which it has not been able to do on its own.
Acquisitions (Source : wiki)
- 2010: WeRead, a social book discovery tool.
- 2011: Mime360, a digital content platform company.
- 2011: Chakpak.com, a Bollywood news site that offers updates, news, photos and videos. Flipkart acquired the rights to Chakpak's digital catalogue which includes 40,000 filmographies, 10,000 movies and close to 50,000 ratings. Flipkart has categorically said that it will not be involved with the original site and will not use the brand name.
- 2012: Letsbuy.com, an Indian e-retailer in electronics. Flipkart has bought the company for an estimated US$25 million. Letsbuy.com was closed down and all traffic to Letsbuy has been diverted to Flipkart.
- 2014: Acquired Myntra.com in an estimated ₹20 billion (US$300 million) deal.
- 2015: Flipkart acquired a mobile marketing start-up Appiterate as to strengthen its mobile platform.
- 2016: Flipkart’s Myntra acquires rival fashion shopping site Jabong for $70 million.
- 2016: In April, Flipkart acquired payment start-up PhonePe
- 2017: In January, Flipkart funded Parenting Network Tinystep With $2 Million.In April, in exchange for an equity stake in Flipkart, eBay agreed to make a $500 million cash investment in and sell its eBay.in business to Flipkart; however, according to a company statement eBay.in would continue to operate as a separate entity from Flipkart.