So the grapevine is that Flipkart is acquiring eBay India*.
Flipkart recently raised $1Bn at a down valuation – the round led by eBay Inc, Microsoft and Tencent.
Why is this a ‘one more mistake’ for Flipkart?
Culturally, the two companies are totally different. eBay is a pure play marketplace, while Flipkart FWIW is a forced marketplace due to funding structure (WS retail still is the number 1 seller?).
Is that a simple difference?
No. And it’s not just about the format, it’s about the way the two companies look at marketplace model.
To give you an idea, eBay gives you seller contact details for you and the seller to figure out the deal. Flipkart is anything but transparent. Flipkart seller ratings may not matter, but sellers in eBay will beg you to give them a good rating.
It’s just different DNA.
And of course, eBay India has made multiples from its stake sale in Snapdeal, which is now talking to Flipkart and others for acquisition (this is so crazy, right!)
My guess is that this will turn out to be a bad idea for Flipkart, unless this deal was part of the reason why eBay US invested in Flipkart.