Flipkart is India’s largest e-commerce company and it is getting tough competition from Amazon. Flipkart announced Monday that it has signed an agreement to acquire eBay India.
As part of deal eBay will make cash investment in Flipkart, and hand over its India business to Flipkart. None of them shared how much cash investment eBay is making but according to Reuters, it’s $500 million.
“This deal reaffirms our resolve to hasten the transformation of e-commerce in India through technology,” Flipkart founder said in a press statement.
“eBay is committed to winning in India in partnership with Flipkart. Our exclusive global trade partnership will allow eBay and Flipkart to reach more consumers around the world”, Devin Wenig, president and CEO of eBay, said in a press statement.
Both the e-commerce companies believe the convergence of their business will offer customers “Access to the wide array of global inventory on eBay While eBay’s customer will have access to more unique Indian inventory provided by Flipkart sellers”.
Analysis praised the move. This investment will help Flipkart to battle hard with Amazon, who invested an additional $3 billion in India saying that the India is the company’s fastest growing market.