Bangalore, India (PressExposure) February 08, 2012 -- The acquisition is a combination of cash and equity. The founders of Letsbuy along with their 350+ team will continue to function independently, with the added advantage of now being able to access Flipkart's superior technology platform and supply chain capabilities.
Speaking about the acquisition, Flipkart's co-founder and CEO Sachin Bansal said, "This acquisition fits into our strategy of building dominant shares in all categories we operate in. 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 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".
Letsbuy.com founder & CEO Hitesh Dhingra said "Letsbuy.com has experienced a phenomenal growth in the last one year and holds a dominant position in e-commerce industry in India. We believe that our expertise in 3Cs* category matched with Flipkart's superior technology and supply chain could be a killer combination. 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. "
While the finer details on mutual synergies are being worked out by both teams at present, the move has been welcomed by investors of both firms. Helion, the lead investor in Letsbuy.com has 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.
3C's - Computers, Communication and Consumer electronics
Annexure: Factfile of Flipkart & Letsbuy
Letsbuy.com, started by Hitesh Dhingra and Amanpreet Bajaj in 2009, has built a strong presence for itself in the consumer electronics space in short span of time. It has strong relationship with over 400 brands in this category. It has a 350+ strong team and warehouses across 4 cities in India. It gets 5 million monthly visits and ranks among top 200 websites in India. Letsbuy.com has recently launched categories like watches, toys, sports and office supplies on its portal. It also offers innovative 'Buy Back Program" and 'Extended Warranties" for online consumers.
Flipkart.com, India's largest player in the e-commerce space entered into the electronics category with the launch of mobiles in Sep 2010. Since then it has grown rapidly with the introduction of innovative features like COD, 30 day replacement guarantee and its own delivery network. Today the portfolio ranges across 11 categories - from books to music, mobiles, computers , cameras, home& kitchen appliances, TV& Home theatre systems, Personal and healthcare products and the newly launched stationery items. The site ranks among top 30 in the country (as per Alexa rankings) and gets 12 million + visits every month.