FlipKart buys LetsBuy to Compete with Junglee for $20 – $25 mln
Flipkart.com, Top Indian retail website, acquired Letsbuy.com in order to compete with the Amazon’s new Indian Shopping Site Junglee.com. Flipkart havent disclose the value, but a person with direct knowledge have said it was in the range of $20 million to $25 million. Letsbuy is India’s second largest retailer in electronics, Flipkart said.
The acquisition by Flipkart.com has come a week after Amazon’s entry into the Indian market through Junglee.com.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.
“Consumer durables is one of the faster growing categories and is an easier one to move online,” said Saloni Nangia, senior vice president at Technopak Advisors. “Rather than spending time and effort in developing it themselves, this acquisition gives Flipkart a ready access to consumer durables, digital products and strengthens their presence in that area.”
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