In just a few days after Amazon announced Junglee.com in Indian market, here comes an announcement from India‘s biggest e-Commerce giant and Bangalore based company Flipcard on buying the second biggest e-Commerce company Letsbuy.com which is based out of Delhi. Letsbuy.com was incorporated in 2009.
The deal is a mix of cash and equity and valued at around 25 M USD. Letsbuy.com has received a 6M USD in mid of January from Helion, Accel & Tiger Global for its expansion plans. Interestingly Accel & Tiger Global have investments in Flipcard as well in 2009 and 2010.
The acquisition of Letsbuy further strengthens the footprint of Flipcart in Indian market and increases the breadth of the product catalogue. As of now, Letsbuy.com caters to 150 brands including Microsoft, HP, Sony, Canon etc.
Flipcart users in India seems to be extremely satisfied with the level of service provided by Flipcart and hence Amazon has a long way to go in changing the mindset of the people for using its service.