Updated: It’s Official Flipkart Acquires LetsBuy.com

Update:  Flipkart has officially confirmed the acquisition of Letsbuy. and added that it is a combination of cash and equity. Flipkart co-Founder & CEO Sachin Bansal said that the acquisition opportunity came at a very attractive price. The exact amount of the deal has not been disclosed.

In a press statement, Flipkart said that the deal will allow for a faster rate of expansion for both companies – giving the combined entity a much larger share in the consumer electronics market.

The founders of Letsbuy along with their 350+ team will continue to function independently, but will be able to access Flipkart’s technology platform and supply chain capabilities. Letsbuy founder & CEO, Hitesh Dhingra said that the Company had a choice to raise a large round of funding as well, however aligning its business with the largest player in the market made sense.


Update: Our sources suggest that LetsBuy’s valuation was between $20-25 million. Another suggests that it is upwards of $25-30 million, depending on the payout.

Earlier today: Flipkart is set to buy LetsBuy.com, MediaNama had learned from multiple and reliable sources. The terms of the deal are not known, and at the time of filing this report, we’re awaiting a confirmation from Flipkart co-founder Binny Bansal. The deal is expected to be announced over the next couple of days.

Manish Vij, the co-founder of the Vun Network, and one of the early investors in Letsbuy declined to confirm or deny the development to MediaNama, saying 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.” Until recently, the rumor was that Flipkart was looking to buy a company in the luxury e-commerce space.

The buzz among the investor community has been that LetsBuy has been looking to raise money for a few months now, and in October 2011, there was a report in VCCircle, stating that that it was close to raising around $40 million from multiple investors including Sequoia Capital and Matrix Partners. It has been a little over a year since Letsbuy raised $6 million from Helion Ventures, Accel Partners and Tiger Global. Note that  Flipkart and Letsbuy have common investors in Tiger Global and Accel Partners. LetsBuy was launched in July 2009, and primarily focused on retailing consumer electronics, communications and computer goods, though it expanded its product portfolio to include toys, sports, healthcare, watches and stationary. The company was founded by Hitesh Dhingra and Amanpreet Bajaj.

Flipkart is believed to have recently raised funds: a report in Mint suggested that the company had raised $150 million at a valuation of around $850 million. From what we hear, the LetsBuy acquisition might be a part-stock, part-cash deal. LetsBuy is believed to be doing around Rs 150 crore annually, while Sachin Bansal had told Mint that Flipkart is going to close this fiscal with revenues of Rs 500 crore.


To us, this acquisition would mark the beginning of a consolidation in the e-commerce space in India, which we’ve heard is struggling for consumer loyalty, but also perhaps give Flipkart a fillip in terms of scale, with two of the relatively larger players combining. To scale, e-commerce businesses would require substantive funds over the next couple of years, and not all companies may be able to raise that kind of funding. It’s going to be a last-man-standing game, and competition will increase particularly with the entry of Amazon.com in India. Size will matter.

  • Vijayshekhar

    That’s a big one!

  • http://www.gadgetguide4u.com/ Vivek Parmar

    Big news in the Indian Market…The point where Letsbuy lacks is its support…

  • http://twitter.com/amathur2k Abhishek Mathur

    This is huge, should lead to more sensible pricing

  • http://twitter.com/thebakaguy Baka Guy

    Flipkart consolidating its position to fight the big daddy of retail e-commerce – Amazon.

  • Rohit

    valuation ?

  • Naren

    Clearly there has been a massive fraud at Letsbuy.

  • http://www.worldofphones.net adityasinghvi

    It’s certainly a huge piece of news. Should FlipKart go through with it, It will be worth keeping an eye on whether this acquisition can be digested easily, given how things work in India. From an E-Commerce perspective, it will be interesting to see how the other players navigate when faced by this Indian Behemoth and Amazon together…

  • Anonymous

    Absolutely the worst support. I still get a lot of people complaining on my blog post - http://www.sandeephegde.me/2011/06/28/lets-not-buy-on-letsbuy-com/

  • Karthik

    Yeah, don’t see synergies.

  • http://twitter.com/mohak Mohak Gambhir


  • RS

    Letsbuy has been in the market for some time now looking to raise another round but unsuccessful. Tiger had left with no choice but to let it die and it is a graceful death for letsbuy; atleast they would be able to clear their debts and give enough time to the team to search for jobs. It is going to be a liability for FK than anything else.

  • http://twitter.com/r0unak Rounak Jain

    Great scoop!

  • http://www.adverguy.com/ Ankit Bathija

    If true, might be tough for Amazon to fight it out here! 

  • http://twitter.com/husainronaq Husain M. Ronaq

    Excellent move by Flipkart. When No.1 and No.2 in any industry join hands, it takes ages for No.3 ever catch up

  • http://gizhack.com/ Madhav Tripathi

    It is a great news. Flipkart can do it and Letsbuy can lets do it. 

  • http://liveblogs.in/ maya

    Thts sad, it would hv been better if letsbuy was left alone, its one of the few quality players

  • pratap

     “LetsBuy is the second largest player in the country, and is the strongest competitior to Flipkart. and still Flipkart is valued at $750 million & lets buy at $25 million ? 

  • Anand Marar

    Incredible move by flipkart…there is a whole product range that flip is not onto as of now..like refridgerators , microwaves etc. A few consumable electronic SKUs that they do sell they are able to supply only in the metros…with this acquisition  they will get inroads into TIER 2 and TIER 3 cities thru letsbuy supply chain…and letsbuy will get excellent customer support system of flipkart..

  • Anonymous

    I think the valuation for letsbuy seems to be inaccurate. 30 Mn seems a bit less. But this could be an opportunity buy where lets buy  had drained most of its cash

  • Ashishg

    LetsBuy is the second largest player in the country, and is the
    strongest competitior to Flipkart. and still Flipkart is valued at $750
    million & lets buy at $25 million ?  – So what about Snapdeal, Homeshop18 and all other players who are ahead of letsbuy in traffic and revenue?

  • Insider

    Letsbuy has good enough cash to sustain for another 6 months and term sheet from 4 investors. this is a good strategic move for both the companies and will help them in consolidating their respective positions.

  • http://hardwarebbq.com/ The Sorcerer

    My bro was saying that since 2 investors are pouring money on 2 business with the same business model, maybe it was best if there were merged. This way one will have all the resources, one of them who have the intention to sell will sell their business to a good business establishment and investors will only need to invest a single time.

    Its a theory,

  • RS

    what strategy?? if it is such a great synergistic fit; why didn’t flipkart buy them out before raising their 150mn just 2 weeks back? it would have given them better valuation… :)

  • Anonymous

    The letsbuy – flipkart deal. A marriage of inconvenience. Made in hell.  Check - http://bit.ly/letsbuyfk

  • Sunny

    would be surprised if LetsBuy’s & FKs users would be unique to each other, In India we are still far away from loyalties. I suspect over 80% will be same. I also suspect if Letsbuy was selling anything more than FK, so how does it add value there too, I wonder if LetsBuy was delivering to more locations compared to FK, also sure that they were not delivering faster than FK, more than 100% sure that LetsBuy’s customers were not better taken care of (support) compared to fk. Hence really wonder how LB adds value to FK.

  • http://twitter.com/anzboy Ansil Fasuludeen

    I think the entry of amazon in india forced the acquisition 

  • Amit

    MIME360, Chakpak and now letsbuy ….acquisition model of flipkart is very tactical than strategical…Amazon(junglee) will have to find a shrewd entrepreneur to disrupt them 

  • Amit

    probably their is a wide gap in terms of their annual revenues ? Or valuation of Flipkart was done by american Tigers and valuation of letsbuy was done by Indian VCs ??

  • Naren

    Agree. Agar aapko lagta hai ki “the Company had a choice to raise a large round of funding as well”, toh mahesh murthy ki kasam, aap…

  • Naren

    Agar aapko lagta hai log is spin ko sahi samjhenge, toh mahesh murthy ki kasam, aap…

  • The Inside Man im Bangalore

    Lol… “Mahesh Murthy ki kasam”

    I swear…

  • Chris

     To be frank, your blog post kinda sucked.

  • Mymail

    sab jal rahe hain Flipkart se, ki ye kal ke chokare aa kar business khara kar liye, successful ho gaye, funding mil gayee, bada valuation ho gaya aur hum pundit log comments/ column likhate rah gaye.. LOL:)))

  • http://www.indiazip.net/ Indiazip1

    Hm nice step to go. Shopping over internet is going cool

  • Rahul

    flipkart wale bacche amazon ke ex employee the…wo amazon se jale aur zalzala ho gaya ….AMamzon better start sigining right contracts for their employees

  • Anon
  • http://www.dickish.com/ Shame

    moron use common sense

  • Guest

    As rightly pointed out, if revenue multiple are taken as a proxy for valuation then letsbuy got a very raw deal but I guess other factors like Operating cash flow, revenue growth and repeat purchases (which in turn would affect customer acquisition cost) have played a major role is the valuation. I guess letsbuy must have been suffering from major cash crunch to accept the deal. Might I speculate that the present VCs could have also played a large role is letsbuy selling its stake. All in all, to sum it up : the second line of the article : “ 
     Flipkart co-Founder & CEO Sachin Bansal said that the acquisition opportunity came at a very attractive price.”

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    you know that awesome book way http://www.onebookforlifesuccess.com