California-based eCommerce company, eBay has received a 5.44 percent ownership interest in homegrown eCommerce giant, Flipkart. The latest filing with the United States Securities and Exchange signify the Flipkart’s merger with eBay India, which was completed in the month of August, this merger brought a gain of $167 million (around Rs. 1,083 crores) for eBay. As stated in the company’s report, California based company made a cash investment of around $500 million (roughly Rs. 3,242 crores) and selling its Indian business arm, eBay.in to Flipkart. Both developments and mergers resulted in a cost-method investment of $725 million (approximately Rs. 4,703 crores) for eBay.

Earlier in April, Flipkart raised $1.4 billion (approximately Rs. 9,076 crores) in a funding round led by eBay, Tencent, and Microsoft. After investing the company has made a way for the homegrown eCommerce giant and further opened the doors for eBay to introduce its Indian subsidiary to its new owners. Moreover, Flipkart was not the only Indian company that eBay had found to participate in the growing e-commerce section in India. The San Jose, the California headquartered company had also invested an undisclosed amount of amount in Snapdeal, which was later on sold in 2016. They also mentioned that “During the second quarter of 2016, we sold a portion of our equity interest in Jasper Infotech Private Limited (Snapdeal).”

This merger and ownership stake of eBay would help Flipkart to expand and grow their services in the coming future. The company already launched its global programme to start exporting its products and render services on eBay and connect with its over 100,000 sellers spreading across 171 million.

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Posted by TECHITIMES

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