EBay originally from California, is an online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide.
Set in Bengaluru , Flipkart is an electronic commerce company founded in 2007 by Sachin Bansal and Binny Bansal . Both Companies has entered into a new merger.
In April this year, eBayInc. had invested $500 million into Flipkart and sold its India business to the company to pick up a stake in Flipkart. The infusion of funds was part of a $1.4 billion fundraising round. The company had, however, eBay.in was remained and operated as an independent entity.
The real reason behind the Merger is the Flipkart dream of obtaining huge funding from EBay. EBay cannot provide new market to flipkart and it is also a safe exit for eBay from India due its unsuccessful business plan in India .
Hence Competition Commission of India on 15 June has notified its decision to approve eBay’s subscription of Flipkart’s shares issued by its Singapore-headquartered entity. “CCI India approves subscription by eBay Singapore of CCPS issued by Flipkart and acquisition of eBayIndia by Flipkart.
Flipkart has shut down its global sourcing platform for its sellers and has instead decided to focus on getting this done through eBay’s global sourcing platform. eBay had an early-mover advantage in India, but it could never manage to capitalise on it and lost to younger rivals Flipkart, Snapdeal and its American rival Amazon.