U.S.-based e-commerce firm eBay on Wednesday said that it had notified Flipkart and Walmart that it intended to sell its holdings in Flipkart, which will represent gross proceeds of approximately $1.1 billion.
The announcement came after Walmart said that it would pay $16 billion for an initial stake of approximately 77% in Flipkart.
“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,” eBay said in a statement.
Reintroduction on cards
eBay said it plans to reintroduce eBay India with a differentiated offer to focus initially on the cross-border trade opportunity, which it believes, is significant. The firm said there was a huge growth potential for e-commerce in India and significant opportunity for multiple players to succeed in the country’s diverse, domestic market.
In April 2017, Flipkart had raised a total of $1.4 billion from China’s Tencent, eBay and software maker Microsoft. eBay’s investment was accompanied by a strategic commercial agreement: In exchange for an equity stake in Flipkart, eBay had agreed to make a $500 million cash investment and sell its eBay.in business to Flipkart. eBay and Flipkart had also entered into an exclusive pact in which they would jointly pursue cross-border trade opportunities.
