Flipkart announced the acquisition of eBay in India. It is one of the leading e-commerce company in the Asian country and is already valued at 11.6 billion dollars.
In India where a subcontinent of 1.3 billion people living, Flipkart is the king of e-commerce in India. Flipkart is founded in 2007 at Bangalore, this website is founded from two ex-Amazon employees.
The company is now valued at $ 11.6 billion, after closing a record $ 1.4 billion round of funding. Among the players in this investment are three major rivals from Amazon: the eBay marketplace. The US giant Microsoft and China’s Tencent, the countries most valuable technology company ahead of Alibaba.
Flipkart absorbs eBay business in India and strengthens its leading position ahead of Amazon
As part of the agreement with eBay, Flipkart will also absorb the business of the multinational in India. Interestingly, eBay invested four years ago in the other major Indian e-commerce player. Snapdeal which currently ranks third in the market, and rumoured that Flipkart acquired Snapdeal. Amazon, second in the market, last year announced an additional $ 3 billion investment in its “fastest growing” market.
“It’s a historic victory for e-commerce in India. Three global technology giants have made the biggest investment in both Flipkart’s ten-year history and the Indian Internet industry,” Flipkart said in a statement.
The deal comes as a part of Flipkart’s 11th round of fundraising of $1.4 billion at a post-transaction valuation of $11.6 billion. Besides eBay’s $500 million investment, the funding is led by other blue chip companies like Chinese Tencent and Microsoft.
eBay started its e-commerce business in India in 2014 which is also a minority investor in Snapdeal. Flipkart’s eBay acquisition will give the company access to consumer-to-consumer (C2C) e-commerce market.