Flipkart Is Going To Overtake eBay.In In India This August
Flipkart will shut down eBay.in from this month and will launch a new platform for refurbished goods as it attempts to tap into a large market segment that is predominantly unorganized. Last year, Flipkart had raised $1.4 billion 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 eBay.in (the India business) to Flipkart.
The Flipkart CEO Kalyan Krishnamurthy said to his employees in a mail that “Based on our learning at eBay.in, we have built a brand new value platform launching with refurbished goods – a large market which is predominantly unorganized… As part of this launch, we will be stopping all customer transactions on eBay.in on 14th August, 2018 and transitioning to the new platform,” He also added “We will keep evolving and bringing newer formats, categories and features which cater to the needs of our value-conscious middle India,” talking about the key barriers to refurbished goods he said trust and convenience are the key barriers and that can be solved at scale with Flipkart’s customer base, and F1 Info solutions and services.
“The new platform has a different value proposition compared to Flipkart, and will cater to a different target audience. We are committed to investing in this independent brand,” Flipkart CEO Kalyan Krishnamurthy pointed out.
Talking about the history of eBay, eBay had forayed into India in the year 2004 and commenced operations through Bazee.com. It had also invested in e-commerce firm Snapdeal in 2013, but eventually wrote off its $61 million investment in February this year.