Global e-commerce company eBay and Flipkart, have agreed to jointly pursue opportunities in the Indian market.
In exchange for an equity stake in Flipkart, eBay will make a USD 500 million cash investment in and sell its eBay.In business to Flipkart, the companies said in a joint statement.
Flipkart will own and operate the eBay.In business upon the close of the transaction.
EBay and Flipkart have also entered into an exclusive agreement in which they will jointly pursue cross-border trade opportunities, it added.
"The combination of eBay's position as a leading global e-commerce company and Flipkart's market stature will allow us to accelerate and maximize the opportunity for both companies in India," said Devin Wenig, President and CEO of eBay Inc.
"eBay is committed to winning in India in partnership with Flipkart. Our exclusive global trade partnership will allow eBay and Flipkart to reach even more consumers around the world," he added.
EBay's global inventory will be accessible to more Indian consumers, while its active buyers globally will have access to Indian inventory provided by Flipkart.
"This partnership bodes well for Indian and global customers, sellers and the wider e-commerce ecosystem. EBay.In has built a strong presence in India over the years and we hope to take it to greater heights as part of the Flipkart group," Binny Bansal, Group CEO, Flipkart said.
Upon the close of the transaction, which is expected later this year, Flipkart will acquire eBay's buyers in India.
EBay will remove the number of active buyers in India from its reporting during the quarter in which the transaction closes. EBay does not expect this transaction to have a material impact on its guidance provided on January 25, eBay said.
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