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Flipkart buys eBay India business, gets $500 million as investment

Touted whilst the largest ever fund raise in the Indian startup ecosystem, e-commerce major Flipkart on Monday raised USD 1.4 billion from Tencent, eBay and Microsoft at post transaction valuation of USD 11.6 billion. In exchange for an equity stake in Flipkart, eBay is creating a money investment of USD 500 million and selling its India business to your company.

Even as eBay has sold its India business Flipkart, not every one of its employees in Asia should be absorbed by the company that is bangalore-based. Source - www.techmanos.com

" There will be an element of employees who can continue with eBay India ? primarily into the India analytics team situated in Bengaluru and can continue to help work that is global eBay. There may another element of employees who can relocate to eBay US," said the spokesperson of eBay India over an email.

As the business would not disclose the numbers that are india-specific globally it claims become having 11,000 employees across 39 nations.

Based on the company's spokesperson, part of employees will go on to Flipkart at the closure regarding the deal that will take days that are approximately 60-90. While another chunk of employees that will continue to offer the transition shall take further more time for you to go on to Flipkart. You will see no retrenchment within the deal, an ebay Asia spokesperson said.

The valuation of Flipkart fell to USD 11.6 billion during the current round, 23.6 percent down from the past round in July of 2015. Flipkart had raised USD 700 million at a valuation of over USD 15 million then.

Upon the close of the transaction, that will be expected later on this year, Flipkart will get eBay?s buyers in Asia. The organization will take away the true amount of active purchasers in India from the reporting throughout the quarter when the transaction closes.

The US-based had entered into the India market, through an acquisition of Baazee.com in 2004. It finally launched its in 2005.

But, despite having an early mover advantage, the business could not ensure it is big when you look at the Asia market and eventually succumbed to competition from much younger rivals including Flipkart.

Not enough a differentiated vision for the India market against its global areas ended up being touted to be among the reason that is biggest for the failure of eBay in India.

It started out as being a trading platform providing auctions, quick purchases and classifieds modes of person-to-person trading. You could sell gems and jewelry, handicrafts, clothes, even used electronics on the internet site.

Auctioning was a well known way of buying products in the usa and had been seen a good way of price finding.

India, nonetheless, ended up being a really different market. Something like auction would not quite match the requirement of this clients here.

Furthermore, former employees also have accused the company of not going for a hand that is free it found tinkering with initiatives.

"All pc software development had to happen from San Jose. The choice to take a call locally did not exist," a former senior administrator said.

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