Flipkarts, the online retailing juggernaut, has taken a $2.5 crore cash buyout to help it overhaul its India-based website, its first such move in two years.
The buyout, in a deal announced on Tuesday, will be made in installments of Rs1 crore each, and is a significant step in the company’s plan to diversify its business and make it more appealing to investors and customers.
Flipkart, India’s largest online shopping portal, was acquired by Amazon India in 2016 for $3.2 billion, and the company has since become a major player in the online shopping market.
The company’s website is now among the world’s top 10 most visited, with more than 300 million visits a day.
The Flipkarten buyout will come as the company, which has struggled with customer growth in recent months, has announced a major revamp of its website in India, including adding more than 40 million new customers.
It has also announced plans to bring in more than 500,000 employees across the country.
India’s online retail market has grown more than 30 per cent over the past two years, according to data from eMarketer.
Flipkarn, which was acquired in 2016 by Amazon for $2 billion after it failed to deliver on its growth promise, has also struggled with growing online shopping traffic in recent years.