Flipkart acquires Letsbuy.com

E-commerce player Flipkart.com today acquired another online retailer Letsbuy.com for an undisclosed amount..The acquisition is a combination of cash and equity and the founders of Letsbuy along with their team of over 350 people will continue to function independently, the company said in a statement.."This acquisition fits into our strategy of building dominant shares in all categories we operate in," Flipkart's Co-Founder and CEO Sachin Bansal said..Flipkart.com went live in 2007 with the objective of making books available to anyone who had internet access. But since then, the e-commerce retailer has diversified into various products.."This acquisition opportunity came at a very attractive price for us and the timing has 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," Bansal added..The acquisition by Flipkart.com has come a week after Amazon's entry into the Indian market through Junglee.com.."The company had a choice to raise a large round of funding as well, however, aligning our business with the largest player in the market made sense as the resultant synergies will guarantee our customers the best possible service, price and selection," Letsbuy.com Founder and CEO Hitesh Dhingra said..He added that Letsbuy.com expects to close current financial year with total revenue of Rs 162 crore and by August it will achieve revenue of Rs 300 crore..The finer details of the deal are being worked out but the move has been welcomed by investors of both firms..Helion, the lead investor in Letsbuy.com, said it believes that the combined strength of the two leading players is formidable and will be able to deliver a stronger value proposition to customers.

Flipkart acquires Letsbuy.com

On our show Tips for Tomorrow, Vivek Mahajan, Head-Research at Aditya Birla Money and Raj Majumder, CEO of Auroch Investment Managers discussed the market performance.

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