Flipkart confirms the acquisition of Letsbuy.com
on February 10th, 2012 
It’s official, India’s e-commerce giant Flipkart has acquired online retailer Letsbuy.com, as the company is seeking ways to strengthen its position in the Indian e-commerce market .Both Flipkart and Letsbuy.com are backed by common investors - Tiger Global Management and Accel Partners.
The acquisition involves a combination of cash and equity, according to the Reuters. But, the two companies have not disclosed the value of the deal, but a person familiar with the matter has told that it was “somewhere in the range” of $20 million to $25 million. Letsbuy.com was looking for a valuation of about $80-85 million, but had to finally resort to a much lower amount after it failed to find takers at that price, according to the reports.
Letsbuy founder & CEO, Hitesh Dhingra said that though the company had a choice to raise a large round of funding, aligning its business with the largest player in the market seemed like a better option. Flipkart added that the deal will allow the company for a faster rate of expansion – giving the combined entity a much larger share in the consumer electronics market.
The founders of Letsbuy along with their 350+ team will function independently, but gain access to Flipkart’s technology platform and supply chain capabilities.
-
Rumor: Flipkart acquires LetsBuy.com... -
LetsBuy Close To Raising $40 Mn In Funding... -
Flipkart to raise $200 Million from PE firms Carly... -
Rumor: Flipkart to acquire Bollywood news portal C... -
Flipkart and Infibeam, the leading E-Commerce Plat...
comments rss