Leading eCommerce marketplace and homegrown startup, Flipkart‘s proposal of acquiring eBay India has been accepted by the Competition Commission of India, which deals and monitors the competitive spirit among various companies and support fair play in the market. Commission has agreed to eBay Singapore’s subscription of convertible preference shares rendered by Flipkart.
In the month of April, the two companies were planning to associate with each other and start functioning and to jointly provide eCommerce opportunities in the Indian market. In the recent announcement, the company stated that in exchange for an equity stake in Flipkart, eBay will make an investment of ₹3000 Crore ($500 Million) and sell its eBay India business to Bengaluru-based eCommerce marketplace.
Apart from this, the company received ₹9000 Crore ($1.4 Billion) from Tencent, eBay and Microsoft at a post-transaction valuation of ₹74000 Crore ($11.6 Billion) and the serial investors like, Tiger Global Management, Naspers Group, Accel Partners and DST Global showed interest in the funding rounds. Flipkart is in talking terms with another homegrown eCommerce player Snapdeal. Now let’s see how this acquisition will affect Flipkart by getting strength in its battle against global giant Amazon and Paytm eCommerce.