eBay has sold its Indian Business to Flipkart by making a cash investment of $500 million.
India’s largest e-commerce website Flipkart is signing an agreement with E-Bay, where the Flipkart is going to buy the e-bay the operations in India.
eBay is making a cash investment of USD 500 million and selling its India business to the Flipkart, the company will receive a stake in the Indian e-commerce company.
The company officials said that a part of the employees will move to the Flipkart on a close of the deal. A section of worker will continue to work with eBay India mainly in the India analytics team based in Bengaluru and will continue to support global work for eBay and another part of the section of the employees will be relocated to eBay US. Lastly, a unit of workers will continue to support the transition and on completion of the transition, will move to Flipkart.
In the month of November, the company removed a workforce of around 150 employees in its Bengaluru centre after it moved back a team of the product development to the United States. The company had a team of around 50 people to continue the work in India. The eBay in Bengaluru is part of other global development centres located around the world.
The agreement between both the companies will jointly pursue cross-border trade opportunities which will be helpful for the company to be as a global inventory that is accessible to more Indian customers, while the active users of eBay globally will have access to more Indian inventory provided by the Flipkart.
Devin Wenig, President and CEO of eBay, said: “The combination of eBay’s position as a leading global e-commerce company and Flipkart’s market stature will allow us to accelerate and maximise the opportunity for both companies in India.”
He also added that “eBay is committed to winning in India in partnership with Flipkart. Our exclusive global trade partnership will allow both the companies to reach even more customers around the world.”
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Group CEO of Flipkart, Binny Bansal, said that the 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 e-commerce ecosystem,” said Bansal.