In an attempt to strengthen both the firms, eBay and Flipkart are planning to merge their Indian platforms. The US-based e-commerce firm eBay, took the decision to invest $500 million in India’s leading e-commerce firm, Flipkart.

According to Nasdaq, the consortium of investors includes Microsoft, eBay, and Tencent, the collective investment for Flipkart is $1.5-2 Billion in an attempt to face competition with Amazon and Alibaba. Latif Nathani, the VP, and MD of eBay India made a sudden exit earlier this month and an indication of other high drama was turning out. He stated in his resignation that he had personal reasons and is moving back to the US.

A former executive had said, “The combined seller base of eBay, Flipkart, Jabong and Myntra will undeniably make it one of the strongest e-commerce entities in India. Some of eBay’s categories, such as collectibles, coins and notes, stamps and charity will enhance Flipkart’s offering to Indian online shoppers, giving it an edge over other e-commerce firms.”

The first mover advantage of India, eBay entered the market by acquiring and has shrunk into the shadows after the entry of Paytm and Shopclues and made a dent in the e-commerce market. This move is expected to bring eBay back into the light and back in the e-commerce race and also varied offerings.

While this move is a hole in the pocket for eBay, Flipkart is set to receive the much needed funding. This will increase the seller base and help in facing Alibaba and Amazon. Alibaba is all set to enter the Indian market by Diwali through Paytm, in which it has invested huge amounts.

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