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eBay India and Flipkart Merger Completed

E-commerce major Flipkart on Tuesday said it has completed the merger with eBay India’s operations.With this, eBay.in will now be a Flipkart Group company. The deal was announced in April when the Flipkart group raised $1.4 billion (approximately Rs. 9,030 crores) from global technology majors eBay, Tencent and Microsoft.

In exchange of an equity stake in Flipkart, eBay had made a cash investment of $500 million and sold its eBay.in business to Flipkart. The announcement comes a day after smaller rival Snapdeal said it was terminating all discussions of a potential merger.

While Snapdeal did not name Flipkart, it had been widely reported that both were negotiating a merger for the last five months.

“Effective immediately, Flipkart will own and operate eBay.in, which will remain an independent entity as part of Flipkart,” Flipkart said in a statement.

 Besides, the companies will also partner to leverage opportunities in cross-border trade, it added.”As a result, Flipkart customers will get expanded product choices with the wide array of global inventory available on eBay while eBay customers will have access to a more unique Indian inventory from Flipkart sellers,” the statement said.

The partnership will, therefore, provide an opportunity to sellers on Flipkart’s platform to expand their sales globally.