Why Flipkart Acquisition of Letsbuy is Nothing short of disaster!

Any news is good news. This is the stance that is being taken by all those who are hailing the news of Flipkart taking over Letsbuy as the changing point in the e-com scenario and that it will give new and higher valuation to similar companies in the fray. The truth cannot be farther from this. One only needs to see the details of the transaction to understand how this was a distress sale or transaction more for Flipkart than for letsbuy. Letsbuy was already going down the drain having expanded recklessly on initial VC funding and not knowing how to sustain when follow up funding which the company was expecting did not come through. It is a typical example of how companies wish and try to be bigger than what they deserve to be on false legs, in this case VC money. And that one should never presume anything in business and be prepared for the worst. Nothing else can perhaps explain the distress sale. Letsbuy had a fantastic website, word of mouth publicity was huge and the company competed with the best like flipkart and ebay.in for every sale. But one should know its limits and grow accordingly. Rapid growth also demands continuous requirements for fresh funds. Profits from current operations in such