E-Commerce major Flipkart has now completed the deal of acquisition with the online auction site eBay India which was first announced on April 10 this year.
Though Flipkart will own and operate eBay.in with immediate effect, the latter will function as an independent entity even as the two firms explore opportunities in cross-border trade, the press note added.
eBay said in the statement, “Effective immediately, Flipkart will own and operate eBay.in. Additionally, the companies are moving forward to jointly pursue cross-border trade opportunities to make eBay’s global inventory accessible to more India consumers, while eBay’s millions of active buyers globally will have access to a unique Indian inventory provided by Flipkart.”
The announcement comes a day after smaller rival Snapdeal said it was terminating all discussions of a potential merger. While Snapdeal did not name Flipkart, it had been widely reported that both were negotiating a merger for the last five months.
The two entities have also signed a cross-border trade agreement, aimed at facilitating expansion into the global e-commerce market. As per the agreement, Flipkart customers will be offered access to a wide range of global brands available on the eBay platform. On the other hand, customers of eBay will have access to Indian products.
Commenting on the development, Flipkart CEO Kalyan Krishnamurthy said, “I’m delighted to welcome eBay.in, its employees, sellers, and partners into the Flipkart family. Being an early mover, eBay.in has a unique standing in the Indian e-commerce market, which is a great addition to Flipkart’s leadership position. Our coming together directly benefits Indian customers and sellers for whom we want to provide the best possible e-commerce experience. This is a step in that direction.”
Both the companies will also partner to leverage opportunities in cross-border trade. This partnership will, therefore, provide an opportunity to sellers on Flipkart’s platform to expand their sales globally. Read more about Indian Startup Ecosystem.