Flipkart will be no longer just about Books. They are in an expansion mode acquiring rival online retail website, Letsbuy.comFlipkart an officially confirmed acquisition of Letsbuy and added that it is a combination of both cash and equity.
Co-Founder and CEO of Flipkart, Sachin Bansal said that the aquisition oppurtunity came for very affordable price. He said that the deal will result for much faster expansion rate for both the companies.
The founders of Letsbuy along with 350+ team members will continue to function independently and will supply chain capabilities. Letsbuy Founder and CEO, Hitesh said that the company had a chooice to raise large round of funding as well.
Here's the Deal
Flipkart is worth 1 billion dollars (850 mn + 150 mn) = 1 billion, and the letsbuy.com deal was done for 30 million, then that's barely 3% of Flipkart shares!!!!
Whoa What a great deal for Flipkart to acquire their rival online shopping website.
The website is focused on retailing Electronics, Computer Goods, Toys, Gifts, Mobile, Healthcare, Watches,etc. Flipkart must have acquired Letsbuy because of the their great part in Consumer Electronics.
With the Entry of the Giant in this Scenario, The Amazon making an entry in to the Indian Market with Junglee.com and offering great deals on each and every Products. But now the Flipkart-Letsbuy aquisition help them to stand strong against Amazon when it makes a complete entry to Indian e-commerce market.
Flipkart founded by the Former Amazon employees, Sachin & Binny Bansal is currently shipping 35,000 items per day across 27 cities through its own delivery system. Flipkart's expansion has largely been possible only because of the customer support it has received.
Amazon has attempted to acquire Flipkart last year. Since then Flipkart has grown considerably having recently predicted a ten fold increase in sales as the countries online retail sale grew significantly during the last few months.
The Indian e-commerse market sale is only a Peanut when compared with The e-commerce giant, Amazon. According to a Survey conducted by comScore, about 60% of the internet users visited online shopping websites. As far as now when the Indian cittizens are concerned the growth of the online retail industry makes a good news because it lets them into far more choices and deals/offers on products and purchases.