ganeshran Posted February 9, 2012 Posted February 9, 2012 Very overpriced if the numbers are true. Dont see a lot of value in the deal other than taking down a competitor http://in.reuters.com/article/2012/02/09/indias-flipkart-buys-letsbuy-for-20-25-m-idINDEE8180DI20120209. (Reuters) - Flipkart, India's biggest online retailer of books and electronics gadgets, has acquired smaller rival Letsbuy, seeking to consolidate its position ahead of Amazon.com Inc's planned entry into the Indian market. Flipkart did not disclose the value of the deal, but a person with direct knowledge of the matter said it was "somewhere in the range" of $20 million to $25 million. The acquisition involves a combination of cash and equity, Flipkart said. Letsbuy, which has 350 employees, will continue to operate independently under current management, it said. Letsbuy is India's second largest retailer in electronics, Flipkart said. Flipkart, which is in funding talks with private investors, is seeking to shore up its position in the world's second most-populous country as Amazon.com, the world's largest online retailer, prepares to open its first distribution centre in India. (Reporting By Harichandan Arakali; Editing by Subhadip Sircar and Ted Kerr) TOP NEWSBUSINESSTECH
Nova Posted February 9, 2012 Posted February 9, 2012 Well Amazon has entered the Indian market through Junglee.com and I wonder if it will buy out Flipkart eventually... :hmmm:
Stuge Posted February 9, 2012 Posted February 9, 2012 hmm earlier it was said that its just a rumors :hmm:
ganeshran Posted February 9, 2012 Author Posted February 9, 2012 Well Amazon has entered the Indian market through Junglee.com and I wonder if it will buy out Flipkart eventually... :hmmm: I dont think Flipkart will sell. They have built a very positive name for themselves in the market. They are in a position to hold their own against Amazon which is still less known in the Indian market. Its puzzling why FK chose to buy letsbuy though. Dont see an iota of value in the purchase other than reducing pressure on their margins because Letsbuy was pricing it quite lower even though they didnt have a good rep in the market
Nova Posted February 9, 2012 Posted February 9, 2012 Well Letsbuy was the second largest online retailer for electronics.. so It makes sense that Flipkart bought it to increase its market share. Amazon would have bought it otherwise. :dontknow:
Stuge Posted February 9, 2012 Posted February 9, 2012 Junglee.com doesn't appeal me a bit . They ship kindle from US, and the price given there is without customs duty + shipping ..this is lame .To me its looks like a halfhearted attempt from amazon .
Raghav_12 Posted February 10, 2012 Posted February 10, 2012 Well Amazon has entered the Indian market through Junglee.com and I wonder if it will buy out Flipkart eventually... :hmmm: Amazon has already tried but Flopkart declined at that point of time.
bulbul Posted February 10, 2012 Posted February 10, 2012 Junglee.com doesn't appeal me a bit . They ship kindle from US, and the price given there is without customs duty + shipping ..this is lame .To me its looks like a halfhearted attempt from amazon . till Retail space opened up i dont think its easy for them to sell witout customs none of the apple products sold here at US price (ipad2 cost $500 in US but here it costs 30K)...guess its same even in UK and OZ
Holysmoke Posted February 10, 2012 Posted February 10, 2012 Junglee is a marketplace. More of a competitor to ebay than to flipkart.
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