Flipkart’s Letsbuy Acquisition – Consolidation in Indian Ecommerce Begins!

Now, if this news is true, it may probably be a game-changer for fast growing Indian E-Commerce space. Last night, Medianama reported that Flipkart will soon be announcing acquisition of Letsbuy.com. Although, there is no official word or confirmation on this acquisition, the news has a good chance of being true.

Flipkart recently closed USD 150 million dollar funding, and are currently flush with funds to make such acquisitions. However, I am a little surprised that they have gone after similar multi-brand space acquisition in which they themselves are in.

Flipkart.com is clearly the leader currently in multi-brand online retail space, while Infibeam, Letsbuy, Homeshop18 and Indiaplaza all have very similar traffic from India as you can see from the Alexa traffic ranking given below.

Although, Amazon’s entry in India should not be much of worry to Flipkart in its current form, this acquisition points to one fact that they want to be far ahead in the game by the Amazon make a full fledged entry with their own multi-brand retail products.

Medianama also points that Letsbuy’s valuation is roughly in USD 20 to 25 million region and is expected to be part cash, part equity deal.

We will update when we get some more details of this deal!