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eBay will relaunch its India business after selling its Flipkart stake to Walmart

The company will gross more than $1 billion from exiting the relationship.

Ebay CEO Devin Wenig
eBay CEO Devin Wenig
Chip Somodevilla / Getty

eBay plans to relaunch its India business after selling its stake in e-commerce company Flipkart to Walmart in the $16 billion takeover of the fast-growing Indian startup, the company announced on Wednesday.

Last year, eBay invested around $500 million for a 5 percent stake in Flipkart and also sold its eBay India business to the startup. The two sides also entered into commercial agreements intended to boost cross-border trade for both companies.

But with Walmart’s purchase of a 77 percent stake in Flipkart, eBay will no longer own a piece of the startup and will end its strategic relationship with India’s Amazon rival. That means eBay will terminate Flipkart’s license to use the eBay.in brand name.

“We plan to relaunch eBay India with a differentiated offer to focus initially on the cross-border trade opportunity, which we believe is significant,” the company said in a statement. “We believe there is huge growth potential for e-commerce in India and significant opportunity for multiple players to succeed in India’s diverse, domestic market.”

Recode previously reported that Walmart would likely have to work out a deal with eBay before completing its takeover of Flipkart. eBay said it expects to receive gross proceeds of $1.1 billion from exiting the Flipkart relationship.

This article originally appeared on Recode.net.

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