Update: Flipkart has confirmed the acquisition of Adiquity to MediaNama. Their statement:

Flipkart has acquired AdIQuity, a leading mobile ad network company. M&A is a key focus for us this year. And given our concentration on mobile, companies that have made a mark in this space will be on our radar. AdIQuity has a history of mobile innovations, extremely valuable experience in the ad space and a talented tech team – all of which are a great strategic fit for Flipkart.”

March 5th 2014: Ecommerce giant Flipkart has bought mobile advertising firm AdIQuity for an undisclosed amount, multiple sources have confirmed to MediaNama that the deal is done. According to the sources, the move will help Flipkart move into broader areas and foray into advertising.

There will be two parts to this business: one part will involve external marketing, where brands can use Flipkart data on user behavior to target customers on the AdIQuity platform across publishers. For example, brands like Johnson & Johnson will be able to target customers who look at diapers on Flipkart with babycare products. The second part of the business will be in internal marketing where the AdIquity platform will be used to allow merchants to promote their products on Flipkart. Flipkart sees this as a significant source of revenue since they have large amounts of consumer data, and the transactions part of the business is a loss making business.

It is also interesting to note that in a recent rejig at the company, Flipkart founder and group CEO Sachin Bansal will moved from day-to-day activities and moved into a more strategic role. Bansal would also be responsible for leading a new advertising revenue thrust, as indicated by this Times of India report.

MediaNama has reached out to Flipkart on the same and will update on any developments.

It’s worth noting that AdIQuity was started as a search engine in 2006 called Guruji.com. In April 2011, Guruji.com had launched a mobile ads mediation and optimization platform, AdIQuity, after shutting down its music search engine.  The company had stated that this platform will acts as a mediator between publishers and ad networks to effectively optimize advertising in the mobile web segment.   Few months later, Guruji.com had launched a Real Time Bidding Ad Exchange for mobile ads, claiming that the exchange will allow Media Buyers to buy mobile web and app traffic from 220+ countries and bid in real time through RTB auctions for defined individual ad impressions. Guruji.com also raised $15 million investment from Sequoia Capital and Sandstone Capital in 2008.