Flipkart acquires eBay India operations
Q. Which is India's biggest ecommerce company?- Published on 27 Mar 17a. Flipkart
b. Myntra
c. Snapdeal
d. None of the above
ANSWER: Flipkart
India's largest ecommerce company Flipkart is acquiring eBay's operations in a deal structured as part of the USD 2 billion capital raising.
This boosts the ecommerce major in its fight for market share on the home turf.
Ebay's Indian unit is a distant sixth in market share after Flipkart, Amazon, Shopclues, Paytm and Snapdeal.
India has a USD 15 billion ecommerce market.
This ebay India unit will get folded into Flipkart as part of the transaction.
Flipkart has closed its USD 1 billion funding from Microsoft, Tencent and eBay.
Round values Flipkart at USD 10 billion.
This is lower than USD 15.1 billion valuation in the previous account but higher than the USD 8 billion valuation expected in the round.
Flipkart has three CEOs at the helm namely Sachin and Binny Bansal and Kalyan Krishnamurthy.
Ebay is a small investor in Snapdeal. It has made unsuccessful attempts to acquire the New Delhi based online retailer.
Ebay was launched in India in 2004. This is ahead of Flipkart's date of inception and the entry of Amazon into Indian markets.
Tencent has backed messaging platform Hike and online medical platform Practo in the past.
Nasdaq based eBay is part of an investment consortium including Microsoft and Tencent.
It will be collectively investing USD 1.5-2 billion in Flipkart.
The market has entered with the acquisition of Bazee.com, has seen eBay lag behind with other e-commerce companies surging ahead.
Combined seller base of eBay, Flipkart, Myntra and Jabong will make this one of the strongest e-commerce entities in India.
