India’s largest online retailer Flipkart is planning to acquire eBay India’s operations as part of its latest funding round of $2billion, according to a reports.
Currently, eBay India is realigning its platform for increasing operational efficiencies between buyers and sellers. Flipkart, one of the largest ecommerce players, understands the nitty-gritties of the Indian market and eBay India can take a leaf or two out of Flipkart’s expertise in cracking the Indian market.
“It’s not that Flipkart needs eBay; what it needs is the money. I’m not very sure if eBay can bring anything extra to the table because it couldn’t make much of an impact in India despite being here for such a long time. It could give them a graceful exit from India rather than shutting operations or withdrawing,”
said Arvind Singhal, chairman at retail consultancy Technopak.
eBay launched its India operations in 2004, but failed to cash in on the early mover advantage before the Indian ecommerce sector became fiercely competitive with Flipkart and Amazon’s entry. Over the years, the US ecommerce company languished behind the bigger rivals and stood a distant sixth in the pecking order behind Flipkart, Amazon, Snapdeal, Shopclues and Paytm.
Flipkart has been in advanced talks with multiple investors for fresh capital after talks with American retail giant Walmart for a $1-billion infusion fell through last year.
Last week, eBay India’s country head Latif Nathani resigned from the company citing personal reasons. He was replaced by Vidmay Naini, an eBay India old-timer, as the new country manager. Naini, who held the role of Director and Business Head in his most recent assignment, has been with eBay for nearly 12 years now.
In November 2016, eBay had fired its entire product and tech team in India, except 15 officials, who were reportedly being moved to the US. Earlier in February 2015, before the split from PayPal, eBay had fired over 350 employees in India, across its development centres in Chennai and Bengaluru.