Ebay has notified Flipkart and Walmart that it intends to sell its holdings in Flipkart, which will represent gross proceeds of approximately $1.1 billion. The California based online retailing company will relaunch Ebay India with a differentiated offer to initially focus on the cross-border trade opportunity, which it believes is significant.
Following the close of the transaction, eBay will also be ending its current strategic relationship with Flipkart, which includes unwinding its commercial agreements with Flipkart and terminating Flipkart’s license to use the eBay.in brand, said the company in a press release.Ebay has notified Flipkart and Walmart that it intends to sell its holdings in Flipkart, which will represent gross proceeds of approximately $1.1 billion. The California based online retailing company will relaunch Ebay India with a differentiated offer to initially focus on the cross-border trade opportunity, which it believes is significant.#
“We believe there is huge growth potential for e-commerce in India and significant opportunity for multiple players to succeed in India’s diverse, domestic market,” said the company as it plans to relaunch eBay India.
The online retailer announced its decision after Walmart finalised its decision to buy 77 per cent stake in Flipkart at a valuation of $16 billion.
Ebay India had become part of Flipkart Group following the successful conclusion of merger transaction between the two entities. The deal was made in April last year after Flipkart raised $1.4 billion from companies like Ebay, Microsoft and Tencent. Ebay had made a cash investment in Flipkart for an equity stake and had sold its India business to Flipkart. (KD)
ALCHEMPro News Desk – India
marketing@alchempro.com
