Flipkart announced on Tuesday that it has successfully concluded the merger transaction with eBay in India, to make eBay.in a part of the Flipkart group. The merger may pose a payment glitch for sellers registered on eBay.in for the time being. Flipkart had announced in April this year that in exchange of an equity stake in Flipkart, eBay would invest $500 million in the Indian e-commerce major and sold its India business (eBay.in) to Flipkart.
Together with Microsoft and Tencent, eBay partook in the funding round in Flipkart that saw the company raising $1.4 billion in April this year.
“Effective immediately, Flipkart will own and operate eBay.in, which will remain an independent entity as a part of Flipkart. Additionally, both companies are also partnering to leverage opportunities in cross-border trade,” the company said in a statement. The cross border trade will help the home grown e-commerce major to ward off competition from Amazon that realised the potential of on-boarding Indian exporters and last year launched its global selling programme in India. Amazon has currently more than 20,000 Indian sellers listing over 45 million products for the overseas market. Now Flipkart has the chance to have a crack at this market through its tie up with eBay.
Meanwhile, in a communication to sellers, eBay India said that sellers on its platform may experience some delay in getting their remittances due to the merger process. The communication to sellers, said, “As communicated to you earlier, eBay India Private Limited is sold to Flipkart and effective August 1, 2017, Flipkart is your new contracting entity for your transactions on the www.ebay.in website. We are in the process of updating our banking and remittance processes which changes are consequent to the change of ownership and therefore can be implemented only after August 1, 2017. Due to these changes necessitated by the change of ownership, it is likely that you may experience a delay in receiving remittance for your transactions on eBay.in.”
Kalyan Krishnamurthy, CEO, Flipkart, said: “Being an early mover, eBay.in has a unique standing in the Indian e-commerce 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 e-commerce experience. This is a step in that direction.”