Flipkart announces its acquisition of LetsBuy
Flipkart has indeed acquired LetsBuy, for an undisclosed sum. LetsBuy’s founders and 350 employees will stay on, as will the online retail site. Flipkart, which until now has been looking to sell across categories, will now be able to use Letsbuy’s richer catalogue of electronics and lifestyle products.
Other reports estimate that LetsBuy was acquired for roughly $20-25 million, as expected earlier today. Both companies’ common investors, Accel Partners and Tiger Global, are expected to get consolidated pay. A Flipkart statement read:
“The acquisition is a combination of cash and equity, and the founders of Letsbuy, along with their 350-plus team, will continue to function independently with the added advantage of being able to access Flipkart’s superior technology platform and supply chain capabilities.”
Speaking on the deal, Flipkart’s CEO and co-founder, Sachin Bansal, said:
“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.”
Letsbuy.com founder and CEO, Hitesh Dhingra, stressed that the deal would make the resultant behemoth a force to be reckoned with, where LetsBuy’s experience “matched with Flipkart’s superior technology and supply chain, could be a killer combination.”
Source: WSJ