Today Medianama broke the news of Flipkart acquiring Letsbuy. I must say it was good investigative journalism displayed by Medianama, such news is not easy to find. It is always interesting to read the comments, so far the news has received positive response.
Medianama rightly points out that ecommerce consolidation has started but I must add that in the case of Flipkart+Letsbuy we “must view” it as a very positive development. Flipkart is buying a good asset, they are buying a property that has a good market share in the electronics space.
Few basic stats of Flipkart: 4,500 employees, ships close to 30,000 items per day (20 products per minute), daily sales of $0.5m (Rs 2 crore), 60% of Flipkart’s orders are cash or card on delivery.
Letsbuy has about 350 employees. For Letsbuy I would think it is a good exit considering it is less than 36 months old venture and ecom valuations in India are under pressure.
Regarding ecom valuations may be finally they are coming to more realistic levels which is good for their own industry and for the entire Indian internet industry as a whole.