After the World’s biggest e-commerce deal of Flipkart-Walmart, eBay plans to relaunch its India business after notifying Walmart about its intention of selling its stake in Flipkart to Walmart for around US$1.1 billion.
eBay has decided to end its strategic partnership with Flipkart and relaunch “eBay India” with a differentiated offer to focus on cross-border trade.
Last year, along with eBay invested around $500 million for a 5% stake in Flipkart and also sold its eBay India business to Indian e-commerce giant now sold to Walmart. At that time, both eBay and Flipkart, also entered into commercial agreements intended to boost cross-border trade for both companies.
Now, however, Walmart has purchased 77% stake in Flipkart, eBay will no longer own a piece Flipkartp and will end its strategic relationship with the e-commerce firm. If eBay managed to sell its 5% stake in Flipkart to Walmart, then Walmart’s total stake in Indian e-commerce firm will be over 80%.
“Following the close of the transaction, we also will be ending our current strategic relationship with Flipkart, which includes unwinding our commercial agreements with Flipkart and terminating Flipkart’s license to use the eBay.in brand”, said eBay in a statement to a business daily.
Notably, when Flipkart acquired eBay’s India business last year, Flipkart had launched a global programme that aimed to give the sellers on its platform an opportunity to sell their products globally — as many as 200 countries — in collaboration with eBay. Moreover, Flipkart had an email too to ‘select sellers’ offering them an opportunity to sell on eBay.in platform, but nothing significant took off.
Now, post Flipkart-Walmart deal, eBay India is going on soliarry path of cross-border selling without Flipkart. “We believe there is huge growth potential for ecommerce in India and significant opportunity for multiple players to succeed in India’s diverse, domestic market,” said thee eBay’s official statement.