The merger transactions between Ebay and Flipkart are complete and Flipkart has officially taken over Ebay. The news about this merger were first made public in March 2017. The merger transaction between ecommerce giant Flipkart and eBay has been formalized. This makes eBay India a Flipkart Group Company, along with names such as Myntra, Jabong, PhonePe, and Ekart.
Back in March, the move to acquire Ebay had come in after Flipkart had managed to raise USD 2 billion in a funding round. At the time, the startup had reportedly entered into a strategic commercial agreement with eBay. According to the contract, eBay made an undisclosed cash investment in exchange for an equity stake in Flipkart. As part of the merger deal, eBay also sold its Indian arm to the 10-year-old startup.
Speaking about the development Flipkart CEO Kalyan Krishnamurthy mentioned,
“I’m delighted to welcome eBay.in, its employees, sellers, and partners into the Flipkart family.”
He further added,
“Being an early mover, eBay.in has a unique standing in the Indian ecommerce 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 ecommerce experience. This is a step in that direction.”
In addition to this, eBay Inc President and CEO, Devin Wenig mentioned,
“The combination of eBay’s position as a leading global ecommerce company and Flipkart’s market stature will allow us to accelerate and maximise the opportunity for both companies in India.”
The two entities have also signed a cross-border trade agreement, aimed at facilitating expansion into the global ecommerce 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.