As we recently speculated, eBay and Flipkart have made a deal to team up and take on ecommerce and Amazon, in particular, in India.
eBay will make a $500 million cash investment and sell the eBay.in business to Flipkart. Flipkart will own and operate the eBay.in business upon the finalisation of the deal. The two firms have also entered into an exclusive agreement where they will jointly pursue cross-border trade opportunities to make eBay’s global inventory accessible to more Indian consumers.
Devin Wenig CEO of eBay says: “The combination of eBay’s position as a leading global ecommerce company and Flipkart’s market stature will allow us to accelerate and maximize the opportunity for both companies in India. eBay is committed to winning in India in partnership with Flipkart. Our exclusive global trade partnership will allow eBay and Flipkart to reach even more consumers around the world.”
Binny Bansal, Group CEO, Flipkart says: “This partnership between Flipkart and eBay is the coming together of two pioneering innovators who have disrupted commerce by applying technology. It bodes well for Indian and global customers, sellers and the wider eCommerce ecosystem. eBay.in has built a strong presence in India over the years and we hope to take it to greater heights as part of the Flipkart group.
The deal is expected to close later this year and Flipkart will acquire eBay’s buyers in India. Let’s see how this pans out. But it does seem like a canny partnership. Both Amazon and eBay seem to be gambling on big returns from India.