Since Amazon has already entered India through junglee.com, Flipkart.com acquiring letsbuy.com is a great move for all consumers. The moment amazon announced its plans to enter in the Indian market, very interestingly flipkart.com added lots of new products in the line-up to maintain the market share. Its amazing to see how things work and turn out with takeovers... Flipkart, a leading retailer, e-commerce player in India and letsbuy another leading e-commerce company, have been competing against each other very aggressively on common categories such as gadgets and electronics. Here the credit for this take over of letsbuy.com supposedly goes to the common investors, the Tiger Global and Accel Partners, of flipkart and letsbuy. Its the vision of these two investors which made this acquisition possible for an undisclosed amount.
This acquisition deal offers huge profits and market, as the CEO and co-founder, Sachin Bansal of Flipkart says,“This acquisition fits into our strategy of building dominant shares in all categories where we operate. We are already leaders in the books and media verticals. Given that we managed to build a leadership position in consumer electronics as well since its launch in early 2011, it made sense for us to consolidate when we saw this opportunity. This acquisition opportunity came at a very attractive price and the timing had also been ideal. The synergies will now allow us to accelerate faster and get to a share similar to what we enjoy in the online books category.
This acquisition deal offers huge profits and market, as the CEO and co-founder, Sachin Bansal of Flipkart says,“This acquisition fits into our strategy of building dominant shares in all categories where we operate. We are already leaders in the books and media verticals. Given that we managed to build a leadership position in consumer electronics as well since its launch in early 2011, it made sense for us to consolidate when we saw this opportunity. This acquisition opportunity came at a very attractive price and the timing had also been ideal. The synergies will now allow us to accelerate faster and get to a share similar to what we enjoy in the online books category.
Flipkart.com seems to have a turnover of 500 crore INR and letsbuy's clocking a turnover of 150 crore INR turnover. The total figures represent the current state. However as regards the hits and traffic is concerned, Flipkart comes #3 followed by other leading players such as homeshop18, yebhi.com, myntra.com and then followed by letsbuy.com at #9. The traffic online shopping pattern, would overlap between the audience of flipkart and letsbuy. The combined online shoppers potential now approximately is 4.5 million for flipkart+letsbuy. That still puts them behind snapdeal.com!
Indian online shopping and e-commerce market is fast growing and Flipkart.com has taken over the major chunk of it. This deal definitely encourages Flipkart to have an ambition to capture more and more markets. The entry of Amazon through junglee.com offering online shopping can make such a huge difference in the Indian market scenario, is really very very interesting!
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