A year after getting acquired by e-commerce giant Flipkart, eBay India is set to sells its stake in Flipkart for tentatively $1.1 billion. eBay is focusing rather to relaunch in India initially concentrating on cross border trade opportunity.
The announcement came after Walmart’s announcement to buy 77% in Flipkart for $16 billion valuing Flipkart at approximately $20 billion.
According to a statement from eBay:
“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.”
eBay also said that it intends to end the current strategic relationship with Flipkart, which includes unwinding commercial agreements with Flipkart and terminating Flipkart’s license to use the eBay.in brand.
Additionally, the eBay statement also said:
“We plan to relaunch eBay India with a differentiated offer to focus initially on the cross-border trade opportunity, which we believe 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.”
Flipkart had raised $1.4 billion from global technology giants’ eBay, Tencent and Microsoft last year and eBay had made cash investment of $500 million and sold its eBay.in business to Flipkart in exchange for an equity stake in Flipkart.
Founded by Sachin Bansal and Binny Bansal, Flipkart Online Services Private Limited owns and operates as an e- commerce website. Headquartered in India, the company provides books, movies, music, games, consoles, televisions, mobiles, digital cameras, computers, network components, software, peripherals, home and kitchen appliances.
Founded in 1995, eBay Inc. operates commerce platforms that connect various buyers and sellers worldwide. Headquartered in USA, eBay’s platforms enable sellers to organize and offer their inventory for sale; and buyers to find and purchase it virtually. eBay employs around 14100 employees globally.