Update: Fresh reports coming in confirm that the buyout deal between popular online retail store brand, Flipkart and LetsBuy.com has concluded and is in the range of $20 – $25 million, roughly coming up to 103 to 123 crores. Reports also confirm that the deal involved a combination of cash and equity. According to reports, LetsBuy's 350 people workforce will continue to work independently under their existing management.
A report in MediaNama comes in as a confirmation to floating rumours, and it is true that popular online retail brand, Flipkart has bought LetsBuy.com for an undisclosed amount. Although the terms of the said deal haven't been disclosed, the report in an update stated that “LetsBuy’s valuation was between $20-25 million. Another suggests that it is upwards of $25-30 million, depending on the payout.“
A new chapter in Indian e-commerce?
However, some sources still deny to confirm any news, stating that, “LetsBuy is the second largest player in the country, and is the strongest competitior to Flipkart. From a comscore standpoint, it has 2 million unique and over 5 million visitors every month, and is among the top 4 commerce sites in the country. The company has options on raising funds as well, but is considering its options as of now.” However, reports also state that LetsBuy was looking around to raise money, and in October 2011, according to some reports, LetsBuy had almost managed to raise some $40 million from investors like, Sequoia Capital and Matrix Partners.
Founded in 2009, by Hitesh Dhingra and Amanpreet Bajaj, LetsBuy.com has slowly over the years grown into a fairly popular online retail store in India. The website offers products across several categories like – Mobile Phones, Digital Cameras, Computers, Electronics, Home Appliances, Gaming, Healthcare, Watches, Toys, Sports and Stationery. Flipkart, on the other hand, is regarded as one of India's largest online retailers and have been around, since 2007. From a mere online bookstore, Flipkart has grown further and now offers products across categories, like media, consumer electronics, computers, healthcare and home appliances.
If the specifics of the deal are true, then Flipkart has surely jumped a few more steps up the e-commerce ladder.