India Inc India Inc: Monday, 14 May 2018 08:37

eBay to sell Flipkart stake for $1.1bn

 

Global e-commerce firm eBay Inc said that it will sell its holdings in Flipkart for about $1.1 billion after the Indian e-tailer was acquired by US retail giant Walmart.

The US-based online selling platform will end its strategic relationship with Flipkart in the process and terminate the homegrown e-tailer’s licence to use the eBay.in brand.

The company said in a statement that it will also re-launch its Indian operations in a new avatar that will initially focus on cross-border trade.

Flipkart had acquired eBay’s Indian business last April as part of a $1.4 billion (Rs 9,000 crore) fundraising round that also involved Chinese Internet giant Tencent Holdings Ltd and software giant Microsoft Corp.

In exchange for an equity stake in Flipkart, eBay made a cash investment of $500 million and sold its India business to the e-commerce firm. The merger process was concluded last August.

Though Flipkart owned eBay.in, the latter operated as an independent entity. The two firms were exploring cross-border trade opportunities to make eBay’s global inventory accessible to more India consumers.

India Investment Journal’ has in-depth coverage on related topics.

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