<article>A year after it sold its India operations to domestic market leader <a href="http://dealstreetasia.com/tag/flipkart" target="_blank" rel="noopener">Flipkart</a>, US-based e-commerce major <a href="http://dealstreetasia.com/tag/ebay" target="_blank" rel="noopener">eBay</a> now plans to end its strategic ties with the Indian firm and relaunch on its own.</article>

A year after it sold its India operations to domestic market leader <a href="http://dealstreetasia.com/tag/flipkart" target="_blank" rel="noopener">Flipkart</a>, US-based e-commerce major <a href="http://dealstreetasia.com/tag/ebay" target="_blank" rel="noopener">eBay</a> now plans to end its strategic ties with the Indian firm and relaunch on its own.
The announcement by eBay follows the whopping $16-billion deal in which Flipkart sold a controlling stake of around 77 per cent to global giant <a href="http://dealstreetasia.com/tag/walmart" target="_blank" rel="noopener">Walmart Inc</a>.
&#8220;eBay has notified Flipkart and Walmart that it intends to sell its holdings in Flipkart, which will represent gross proceeds of approximately $1.1 billion,&#8221; the American firm said in a statement.
In April last year, Flipkart had raised a $1.4-billion funding round from <a href="http://dealstreetasia.com/tag/tencent" target="_blank" rel="noopener">Tencent</a>, eBay and <a href="http://dealstreetasia.com/tag/microsoft" target="_blank" rel="noopener">Microsoft</a>. Under the terms of the deal, Flipkart had also entered into an agreement to acquire the Indian operations of eBay in lieu of a $500-million investment by the US-based company.
Once it sells its stake in Flipkart, eBay said it will also be ending the current strategic relationship with Flipkart, which includes unwinding commercial agreements with Flipkart and terminating Flipkart&#8217;s licence to use the eBay.in brand. It will then relaunch eBay India, focusing initially on cross-border trade opportunities.
&#8220;We plan to relaunch eBay India with a differentiated offer to focus initially on the cross-border trade opportunity, which we believe is significant. We believe there is huge growth potential for e-commerce in India and significant opportunity for multiple players to succeed in India&#8217;s diverse, domestic market,&#8221; the statement said.
eBay, which is also a minority shareholder in <a href="http://dealstreetasia.com/tag/snapdeal" target="_blank" rel="noopener">Snapdeal</a>, was launched in India in 2004. However, it could not make a mark in the price-sensitive Indian market.  The company made a partial exit from the Indian e-commerce firm in 2016 at a profit. The once-prolific Snapdeal faced financial crisis last year and was on the verge of being sold to Flipkart but its founders pulled the plug on the deal and decided to pursue an independent path.
With a massive potential customer base on offer, the Indian e-commerce market has seen global giants such as <a href="http://dealstreetasia.com/tag/amazon" target="_blank" rel="noopener">Amazon</a>, <a href="http://dealstreetasia.com/tag/alibaba" target="_blank" rel="noopener">Alibaba</a> and Japanese firm <a href="http://dealstreetasia.com/tag/softbank" target="_blank" rel="noopener">SoftBank</a> vie to gain a slice of the pie.
The Indian market is set to further heat up with the impending face-off between global rivals Walmart and Amazon in one of the fastest growing markets in the world.
Also Read:
<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/india-flipkart-raises-1-4b-from-tencent-ebay-microsoft-acquires-ebays-india-operations-69898/" target="_blank" rel="noopener">Flipkart raises $1.4b from Tencent, eBay, Microsoft; acquires eBay India operations</a>
<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/walmart-flipkart-16-bln-97565/" target="_blank" rel="noopener">Walmart buys controlling stake in India’s Flipkart for $16b</a>

Once it sells its stake in Flipkart, eBay plans to relaunch its services in India, focusing initially on cross-border trade opportunities.

With India re-launch on its mind, eBay to sell its $1.1b stake in Flipkart

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With India re-launch on its mind, eBay to sell its $1.1b stake in Flipkart

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