It is reportedly planning to raise $1.5 billion from principal investors like Microsoft, eBay, PayPal, Google Capital and Tencent Holdings. eBay and Tencent Holding could be major contributors to the funding. The investment may also entail the merger of eBay India with Flipkart.
However, merging eBay with Flipkart bodes ill, as Flipkart has already been facing mistrust among buyers. eBay’s business model is different where it has no control over the product quality, shipping times, products listings, etc. Hence, there has always been a sense of apprehension among buyers while purchasing on eBay. If both companies merge, it may further aggravate the distrust, thus, painting a bad image on the brand. Nevertheless, we have to wait till official announcement from both the companies.
