Flipkart, India’s one of the largest eCommerce platform, has now officially closed the sale of eBay.in — the India operations of the global eCommerce marketplace eBay.
The sale was announced around four months ago when the company raised $1.4 billion funding round from Microsoft, eBay and Tencent in April this year – one of the biggest in the Indian eCommerce sector.
This news comes just a day after Snapdeal walked away from the Flipkart’s offer for the acquisition – a process that lasted over seven months. Snapdeal will now continue to run as an independent entity.
eBay has invested Rs 3207 crore ($500 million) in Flipkart, that will now own and operate eBay.in effective immediately. In return of its investment and eBay India sale, eBay will receive a significant equity stake in Flipkart, but details are not disclosed.
This deal was a part of the $1.4 billion funding round. Under the deal, Flipkart had acquired eBay’s Indian operations which is expected to continue operating as an independent entity within the company. Flipkart also owns and operates online fashion stores Myntra & Jabong and payments platform PhonePe.
eBay CFO Scott Schenkel had said during an analyst call that they expect the deal to close early in the second half of 2017. He also said that the company will stop reporting active buyer GMV and related financials for eBay India after deal close. The deal got approval of Competition Commission of India in June this year.
Both the companies are also jointly pursuing cross-border trade opportunities to make eBay’s global inventory accessible to consumers in India, while eBay’s customers across the world will have access to inventory from Flipkart sellers.