Latest News – Online e-commerce giant eBay is in talks to sell its under-performing India unit to Flipkart as part of a deal that could see the US company invest $500 million for a minority shareholding in the Indian firm.
The investment will be part of a $1.5-2 billion funding round, out of which Flipkart has already secured $1 billion from China’s Tencent and Microsoft. Flipkart is being valued at close to $11 billion for the latest funding round, lower than its previous high of around $15 billion.
Business Standard had reported about the merger talks between Flipkart and eBay India on March 21, stating that it would give the firm a chance to play in India’s consumer-to-consumer (C2C) e-commerce market. Flipkart’s biggest rival Amazon owns peer-to-peer marketplace Junglee and recently integrated the services with its main platform.
Despite eBay having a first mover advantage in India after acquiring Baazee.com in 2004 and making an entry into the market in 2005, it has been relegated to the sidelines. The company is outranked not just by Flipkart and Amazon, but also by younger local firms Snapdeal, Paytm and Shopclues.
While undergoing one of its biggest transformations globally, eBay has been showing lesser and lesser interest towards its (Read More)