eBay plans to relaunch its India trade after promoting its stake in e-commerce corporate Flipkart to Walmart within the $16 billion takeover of the fast-growing Indian startup, the corporate introduced on Wednesday.
Final 12 months, eBay invested round $500 million for a five p.c stake in Flipkart and likewise offered its eBay India trade to the startup. The 2 facets additionally entered into industrial agreements meant to spice up cross-border business for each firms.
However with Walmart’s acquire of a 77 p.c stake in Flipkart, eBay will not personal a work of the startup and can finish its strategic courting with India’s Amazon rival. That suggests eBay will terminate Flipkart’s license to make use of the eBay.in emblem title.
“We plan to relaunch eBay India with a differentiated be offering to center of attention to begin with at the cross-border business alternative, which we consider is very important,” the corporate mentioned in a observation. “We consider there’s large expansion attainable for e-commerce in India and important alternative for a couple of gamers to reach India’s various, home marketplace.”
Recode in the past reported that Walmart would most probably need to figure out a care for eBay ahead of finishing its takeover of Flipkart. eBay mentioned it expects to obtain gross proceeds of $1.1 billion from exiting the Flipkart courting.