Mergers and acquisitions are the order of the day and to thwart the attempt of Amazon to capture Indian market through Junglee. As we know that Flipkart is able to mop up USD 150 million funding and thus it can use between USD 20-25 Million for buying Letsbuy. Do have a look at Flipkart business model to understand the requirement for acquisition.
Flipkart plans to give competition to Amazon, Homeshop18 and Indiaplaza and wants to retain no 1 slot in multi-brand online retail space. The announcement is likely to be announced soon. This is a beginning of an era of consolidation in ecommerce segment in India.