Written by StockNews.com

eBay Inc. (Nasdaq: EBAY) just made a big move to bolster its presence in one of the world’s fastest-growing e-commerce markets by investing $500 million in India’s Flipkart, a leading e-commerce player in the increasingly lucrative emerging market. In exchange, eBay will also sell eBay.in — its Indian-focused variant — to Flipkart, which will then own and operate the site.

Said Devin Wenig, President and CEO of eBay Inc., via press release:

“The combination of eBay’s position as a leading global eCommerce company and Flipkart’s market stature will allow us to accelerate and maximize the opportunity for both companies in India.

eBay is committed to winning in India in partnership with Flipkart.

Our exclusive global trade partnership will allow eBay and Flipkart to reach even more consumers around the world.”

Flipkart is similarly happy about the move. Said Binny Bansal, Group CEO, Flipkart:

“This partnership between Flipkart and eBay is the coming together of two pioneering innovators who have disrupted commerce by applying technology.

It bodes well for Indian and global customers, sellers and the wider eCommerce ecosystem.

eBay.in has built a strong presence in India over the years and we hope to take it to greater heights as part of the Flipkart group.”

The transaction is expected to close later this year, at which point Flipkart will acquire eBay’s buyers in India. eBay doesn’t expect the move to change its current earnings guidance for 2017.

…Year-to-date, eBay has gained 14.21%, versus a 5.68% rise in the benchmark S&P 500 index during the same period.

According to website traffic reports from Alexa, Flipkart is the #9 ranked site in India and is the 160th most trafficked website globally.

EBAY currently has a StockNews.com POWR Rating of A (Strong Buy) and is ranked #8 of 43 stocks in the Internet category.