One in a couple of largest e-commerce company in India, Flipkart has announced its acquisition of eBay India. Recently, the company has announced its fresh funding around $2 billion. This move from the e-commerce giant helps to fight with its rival Amazon. The acquisition will take up the eBay India operations and become a part of Flipkart.
eBay was launched back in 2004, and the failed to bring users close to e-commerce portal in India. The debut of companies like Snapdeal, Flipkart, and Amazon has pushed the eBay behind the pack. Reports say that eBay has listed even below the Paytm and Shopclues. As per filings with the registrar of companies, eBay has reported huge losses of Rs 262 crore in the FY 2015-2016.
When asked about the happening issue, eBay India spokesperson said, “eBay does not comment on market speculations.”
Flipkart secured its recent funding around $10 billion, which is below the $15.5 billion valuations which the company saw in 2015. The latest round of funding included investors from Tencent, eBay, and Microsoft. Latif Nathani, head of eBay India has quit the company recently. Earlier in November, the company has fired about 100 of its workforces at its technology center in Bengaluru.
Flipkart is fighting strong in the few months to raise funds, and the latest round will help the Flipkart to stand strong with its rival Amazon.in. Flipkart is negotiating with US retail giant Walmart to raise funds had not closed and that the US Company may invest in the medium term e-commerce.