According to Reuters report, Flipkart India’s most popular and biggest eCommerce retailer for books, gadgets and electronics, has acquired LetsBuy (which according to Flipkart is second largest online retailer for electronics and gadgets) to help itself for retaining its position in Indian market, to overcome with the upcoming competition from Amazon. Earlier to this we have reported about Amazon’s Indian entry Junglee which works as price comparison website and for sure they have plans to enter Indian online space.
Although Flipkart didn’t disclose any details about the deal, Reuters have reported that the deal is somewhere in the range of $20 to $25 million (according to the person who have direct knowledge about this deal). In regard to the deal, Flipkart says that the deal includes the combination of the cash and equity, and as if now LetsBuy along with its 350 employees will continue to operate as a separate entity and function completely independent under the vision of its current management.
On the flip side, Flipkart is in discussions with the private/Angel investors in a plan to shore up its position in the country as the competition will become more tough once Amazon.Com actually enters the market, and Amazon.Com the world’s largest online retailer is all set to open up its first distribution center in India.