India’s top E-commerce company Flipkart is said to be buying eBay’s operation in the country. According to the reports, this deal is a part of $2 billion worth capital raising. Flipkart recently raised $1 billion through Microsoft and Tencent in its funding rounds and the company is now planning to go ahead with the funding till it reaches $2 billion mark.
E-commerce company eBay was launched in India back in 2004, way before Flipkart and Amazon came in to existence here. However it could not retain a strong hold in Indian market and lacked behind with time. eBay currently ranks 6th in the market share with Flipkart, Amazon, Shopclues, Paytm and Snapdeal above it. Flipkart will fold the entire share of eBay in India’s 15 billion worth market with it-self as a part of the transaction. With this, even eBay will get to be in the battle front against Amazon.
Flipkart has raised about $4.1 billion in 13 funding round since January 2009 and is up against US giant Amazon in race to acquire highest share in India’s e-commerce market. With founders Sachin Bansal and Binny Bansal stepping away from the core operations, Mr. Kalyan Krishnamurthy is now the CEO of the company. Also, after eBay’s country head for India, Latif Nathani quitting post his 10 years of service, Vidmay Naini has been appointed as the new country manager for company’s India business.
According to the sources, there is no official news form eBay or Flipkart on this matter and further on-goings will be informed as and when things happen.