In a move that signals a consolidation in the Indian online retail space, leading e-commerce company Flipkart has taken over Letsbuy, a strong cyber player in the consumer electronics category.
Even as the industry referred to the deal as an Amazon-Junglee effect, Flipkart co-founder and CEO of Sachin Bansal was quoted by Business Standard, ''the discussions have been on for some time. So it would be incorrect to say that it's a fallout of Junglee.''
US e-commerce giant Amazon entered the Indian market last week with Junglee, an online shopping site it bought a few years ago (See: Online retailer Amazon goes Junglee.com in India).
The Flipkart-Letsbuy deal value was not announced, but according to analysts it is estimated at around Rs125 crore in combination of cash and shares.
According to Bansal the price was
"definitely very attractive" for the company at the point in time.