3. - FLIPKART ACQUIRES EBAY ( eBay BUSINESS IN INDIA)

Flipkart buys ebay’s india business:- Merger and Acquisition ************************************************** Flipkart and Amazon are running neck and neck at the top of India’s $15 billion online retail market. This marks the largest capital infusion for any privately-held Indian internet venture. The country’s total e-commerce sales reached $16 billion last year, according to Forrester. And that total is expected to grow at a compound annual growth rate (CAGR) of 31% to hit $64 billion in 2021. With more than 1.2 billion consumers, India’s enormous market is a potential gold mine for e-commerce companies that can gain significant market share there. According to a study conducted by the Internet and Mobile Association of India, the e-commerce sector is estimated to reach Rs. 211,005 crore by December 2016. The study also stated that online travel accounts for 61% of the e-commerce market.[9] According to a study done by Indian Institute of eCommerce, by 2020 India is expected to generate $100 billion online retail revenue out of which $35 billion will be through fashion e-commerce. Online apparel sales are set to grow four times in coming years.[10] *********************************************************** Flipkart:- The Bansals, co-founded Flipkart ten years ago, as an online bookstore and expanded to become a horizontal e-commerce player modelled on their ex- employer the Jeff Bezos-led Amazon. Flipkart said Monday it has raised $1.4 billion led by China's internet giant Tencent, with participation from the online auction site eBay and Microsoft, valuing the Bengaluru-based company at $11.6 billion, post the investment. Flipkart offers over 80 million products across 80+ categories and is known for pioneering services such as Cash on Delivery, No Cost EMI and easy returns – innovations that made online shopping more accessible and affordable for millions of customers. ******************************************************************* eBay:- eBay India may have been valued at about $200 million is a global commerce leader including the Marketplace, StubHub and Classifieds platforms. Collectively, we connect millions of buyers and sellers around the world, empowering people and creating opportunity through Connected Commerce. Founded in 1995 in San Jose, Calif., eBay is one of the world's largest and most vibrant marketplaces for discovering great value and unique selection. In 2016, eBay enabled $84 billion of gross merchandise volume. eBay Inc has put $500 million in Flipkart and sold its India business to the Bengaluru firm. ******************************************************* Reasons for E-bay to merge with Flipkart:- Putting the eBay India business with Flipkart will make it a bigger business, they’ll co-populate their inventory, share their buyers and just have more scale. It gives Flipkart a leg up for their sellers to get a global consumer base eBay has a small shareholding in Snapdeal, an investment that hasn't worked out. eBay’s, own India operations never really took off. Ecommerce in india has huge scope in the future. ************************************************************ Benefit: the companies are moving forward to jointly pursue cross-border trade opportunities to make eBay’s global inventory accessible to more India consumers, while eBay’s millions of active buyers globally will have access to more unique Indian inventory provided by Flipkart. In exchange for an equity stake in Flipkart, eBay will make a $500 million cash investment in and sell its eBay.in business to Flipkart. ************************************************************** Tencent:- Tencent, eBay Seen As Strategic Investors China's Tencent, which runs the hugely successful messenger service We Chat, is being positioned as a strategic investor along with eBay after years of getting on board financial backers in Flipkart. Tencent joins as a strategic investor, bringing experience in linking social networking and e-commerce. In leading this funding round, Tencent will lend significant expertise to Flipkart, a company statement said. "This strategic partnership enables Tencent to participate in the exciting opportunities in e-commerce and payments in India. We look forward to helping Flipkart to deliver compelling experiences to users throughout India, and to contribute to the development of the internet ecosystem there ************************************************************** Investment in flipkart:- Flipkart has raised nearly $5 billion in capital, accounting for more than 45% of funds raised by all 10 Indian unicorns, which include Snapdeal, Paytm, Ola and Quikr. Flipkart had raised $3.4 billion from investors such as Tiger Global, Naspers, GIC of Singapore, Qatar Investment Authority and Yuri Milner's DST. Tiger Global, a New York-based investment fund is the largest investor with about 30% stake in Flipkart. Funding to give Flipkart power to fight Amazon