EBay folds Indian operation into local retailer Flipkart

Facing fierce competition from Amazon.com, eBay has sold its Indian operation to local retailer Flipkart, while joining Tencent and Microsoft in investing US$1.4 billion in the Indian company.

In exchange for an equity stake in Flipkart, eBay will make a $500 million cash investment in the local startup to whom it will also sell its eBay India business, the e-commerce giant said in a statement. Flipkart will run the eBay India business as an independent entity upon the close of the transaction.

India’s online retail business has witnessed cut-throat competition, with most of the players engaging in deep discounting and new services to customers, such as the ability to pay in cash when orders are delivered. 

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Source: http://www.cio.com

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