LetsBuy shuts shop! Traffic will be redirected to Flipkart

LetsBuy has finally called it a day and shut the shop (as we mentioned earlier that May 31st was the deadline for LetsBuy to start redirecting its traffic to Flipkart*).

This is what the homepage looks like

Letsbuy - Bought..and Killed

Letsbuy - Bought..and Killed

“Dear Visitor,

Thank you for your valuable patronage to letsbuy.com. In order to further improve your shopping experience, we have integrated our operations with the largest player in the category – FLIPKART.COM. We are redirecting all our visitors to Flipkart.com where you can avail the same exciting offers on the entire range of products.

For our existing customers, your order history and status remains secure with us. You can get all details about your existing orders by dialing : 0124 4901234 (from 8 AM to 9 PM )

We once again thank you for your continued patronage and look forward to providing even better shopping experience, now through Flipkart.

Yours sincerely,
The Letsbuy team

GO TO FLIPKART.COM

We have covered the entire saga in depth earlier, though what surprises is how a site with so much of traffic has been shutdown (or rather, traffic has been redirected).

* Is that the best Flipkart could do with LetsBuy? From the earlier email that was sent to LetsBuy employees, the key message we got was that Flipkart wanted to only integrate the checkout process (and hence backend), but given the complexity in the integration, they probably decided to kill the brand and redirect the entire site traffic to Flipkart.

LetsBuy: The Story

LetsBuy was started in 2009 (started  by Hitesh Dhingra, who earlier was cofounder of Tyroo and also runs CafeGadets.in) and raised raised $6mn in funding (in Jan 2011) from Helion Venture Partners, Accel Partners & Tiger Global.

The company was later acquired by Flipkart a year later and post acquisition, shut shop on May 28th, 2012.

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The key question however remains unanswered – why did Flipkart buy LetsBuy? To kill its biggest/upcoming competition? Or was under a pressure from its investors. For the uninitiated, Flipkart raised mega round of funding from Tiger Global and Accel Partners late of 2011, i.e. the same set of investors who invested in LetsBuy.

From what we know (and is confirmed) is that LetsBuy did get a term sheet (from a well known VC firm whose name we cannot disclose), but the company didn’t get the valuation they were expecting. Hence, the decision to merge with Flipkart.

OR

Did they ever have a say in acquisition decision?