Can Flipkart funding and its merger with eBay oust Amazon?
The latest Flipkart funding can possibly take down Amazon India! Read to know how!
Indian e-commerce giant Flipkart has become stronger with its latest acquisition of another e-commerce company, eBay India. Raising around $1.4 billion from three major companies: Tencent, eBay, and Microsoft, the company has bagged its biggest ever funding till date. This Flipkart funding is a good thing happening to the Indian market. Also, this comes as an inspiration for budding startups in the country. Now, let’s talk about how the funding and Flipkart & eBay merger affect the Indian markets.
The game of online shopping is becoming interesting with every turn around of the Sun. Funding from these three companies could be a major game changer, which also feels like a corporate rebellion formed to beat the behemoth Amazon. Looking into a little backstory, eBay India and the Chinese e-comm giant Alibaba have a surplus amount of stakes in Snapdeal. On the other hand, Alibaba has a major 40% stake value in payment and commerce firm Paytm. If you are a Game of Thrones fan or even aware a little of something like power politics, you can obviously see this as some houses joining together to beat the throne king.
With $1.4 billion support already in Flipkart’s bag, the company has got everything one needs; capital, time, and support. Also, with speculations around the corner that another half a billion is en route Flipkart. This looks as a threat to Amazon India as its annual pocket money is just $1 billion from its American parent.
However, the Flipkart & eBay merger has its downsides too when considering the working formulas of the two companies. Flipkart is wholly based on seller to consumer functioning whereas eBay is centered around consumer to consumer operations. With two different pieces trying to fit together, it almost comes as a challenge for Flipkart. We’ll have to wait and see how it copes up with eBay’s different approach and backfoot mindset when it comes to creativity and decision making. Let’s hope Flipkart is very good at building Lego!
With Alibaba on its fastest route to the subcontinent, Paytm & Snapdeal waiting with the biggest bouquets, and Flipkart & eBay making amends to beat the giant, the Hercules of online shopping, Amazon will have to pull out its best card as soon as possible.
Will Flipkart oust Amazon, or vice versa? Only the time would tell. Until then, keep calm and let the soup stir!