eBay, online marketplace of America which is counted as foremost of the one offers consumers a platform for selling, purchasing, and digital purchasing.
It is the first major and global ecommerce platform that established shop in India a long time ago. But this Nasdaq listed company could not make a stand for itself with it’s first move in India which is considered as one of the fastest growing e-commerce market. Currently Flipkart and Amazon are the market leaders.
Ebay to invest $500 million
On Monday, eBay revealed that it is going to invest about $500 million to purchase a significant amount of stakes of Flipkart which is about to join Microsoft for a funding round of $1.5 billion driven by Tencent. eBay will also shut down it’s Indian operations which was set up in 2004 after it bought the Indian startup Baazee.com for INR 230 crore.
Leadership team of Flipkart
Naveen Ministry-head of domestic sector of eBay, Vidmay Naini-eBay India head, And Pankaj Ukey-Director of category management and seller services are going to participate in Leadership team of Flipkart.
Why company trail behind in competition
As per experts, company is involved in conveying the fortune to Pierre Omidyar, Philanthropist founder of the company, and did not do much for business advertisement as well as developing of strategies to keep clients engaged at its Indian marketplace. It is also neglecting promotion of fashion and thus trails far behind than others in ecommerce marketplace of country.
One of the former executive of eBay India who reckon about company’s gross sale that is below $300 million and said, “When the (online retail) market turned in India during 2011 and 2012, they did not invest”.
Investment by Amazon and other rivals
Concurrently, Amazon has invested $5 billion for Indian marketplace whereas Flipkart has recently raised a fund of $4.6 billion. Before this deal with Flipkart, eBay’s major investment was in Snapdeal where it put $34 million in first round at a valuation of $210 million in year of 2013.
eBay sold share of Snapdeal
eBay sold most of Snapdeal’s share for a profit to large players like Canada Ontario Teacher’s Pension and China’s Foxconn during the peak period of Snapdeal when it was evaluated at $6.5 billion.
eBay will be separate unit
It is revealed through some reliable sources whose minds are aware with the fact that after the deal with Flipkart, eBay will be driven as separate unit or brand till the time their backend operation are integrated as per requirement.
eBay’s Indian seller can access buyers in future
One of the spokesperson also said, “eBay’s sellers in India will have access to more buyers in the market, and Flipkart sellers will, for the first time, be able to sell to global consumers”.
Staff and team of eBay India after deal
Well Analytics team of India will work as individuals at Bangalore. Various teams including local product engineering team as well as business offices of Mumbai, Jaipur, and Delhi will employ some transition in employees whereas the exact calculation of staff under vertical was not decided or revealed yet by India eBay.
Connection between eBay and Flipkart
Well Flipkart and eBay are somehow connected with their important associative. Like Oliver Rippel who is one of the leading group of Flipkart, earlier associated with eBay Pacific Asia and China during 2000 to 2008. Whereas CEO of Flipkart, Kalyan Krishnamurthy was also associated with eBay Pacific Asia from 2006-2011.