The Return of eBay in India

Recently, eBay, an American e-commerce giant, launched its first global capability centre (GCC) in India, selecting Bengaluru over Hyderabad due to its diverse talent pool and vibrant innovation ecosystem.

The 65,000-square-foot facility will house critical functions including technology and engineering, AI/ML, applied research, product development, product management, and data analytics. With plans to employ over 300 engineers, the centre is positioned as a strategic innovation hub, complementing eBay’s existing operations in the US and China.

Going backwards, eBay entered India in 2004 by acquiring Baazee.com, one of the country’s earliest peer-to-peer marketplaces, and officially launched eBay.in in March 2005, integrating Baazee into its global platform and enabling Indian users to access cross-border trade. 

Between 2005 and 2013, eBay experienced steady growth but remained largely focused on a consumer-to-consumer (C2C) auction model, which appealed only to niche users. 

During this period, competitors such as Flipkart (2007), Snapdeal (2010), and Amazon (2013) gained significant traction with larger marketing budgets, trust-building mechanisms like cash-on-delivery and return policies, and convenient B2C models, which eBay lacked.

In 2014, eBay made an unsuccessful investment in Snapdeal before pivoting to a strategic partnership with Flipkart in April 2017, selling eBay.in for approximately $211 million and taking a 5.44% stake in Flipkart (around $500 million), with Flipkart managing the platform and cross-border trade. 

However, following Walmart’s acquisition of a 77% stake in Flipkart in 2017–2018, eBay’s strategic alignment shifted, leading to the termination of the Flipkart partnership, discontinuation of the brand license, and the shutdown of eBay.in by August 14, 2018, with Flipkart replacing it with a refurbished-goods marketplace. 

eBay continued its global operations but never relaunched in India, citing intense competition and unfavourable market dynamics. However, during the GCC launch in Bengaluru, Mazen Rawashdeh, SVP & CTO eBay, reportedly said that eBay never exited India. The company stayed here, but shrunk the footprint, and looked at supporting and augmenting the functions outside of India. This time the strategy is completely different.

Several factors contributed to eBay’s inability to sustain operations: its C2C auction model never scaled in India, flash auctions and bidding lacked appeal compared to fixed-price, fast-turnaround alternatives, buyers faced trust and quality issues, including counterfeit listings and weak grievance settlement mechanisms.

The company also failed to localise its global brand effectively, as reported, underinvesting in local logistics, marketing, and payment options like cash-on-delivery; and after halting investment in India, Flipkart had little strategic reason to maintain eBay.in, especially post-Walmart acquisition.

Then, Why Now?

Sunil Padmanabh, strategic advisor to GCCs, told AIM: “eBay’s Bengaluru GCC is a big step forward since it gives them direct access to India’s strongest product, AI/ML, and engineering talent, helping build smarter, faster, and more scalable global commerce solutions.” 

He also mentioned that the only caution is ensuring this hub drives true product ownership, not just scale. Unlike last time, where the focus was on competing in the local marketplace, this move is about building global capabilities from India.

“Last time, eBay came to India chasing GMV (Gross Merchandise Value). This time they are here for talent. Bengaluru’s depth in AI, product, and engineering gives them a true global innovation engine,” Padmanabh added.

Bengaluru’s appeal stems from its access to an outstanding talent pool, reputation as a technology innovation hub, and proven ability to scale businesses effectively. Kimberly-Clark, known for brands like Huggies, Kleenex, and Kotex, also chose Bengaluru for its GCC for these strategic advantages.

“The primary reason for Bengaluru, in my opinion, is the access to a great talent pool here,” Sreekanth Jayabalan, VP and CIO, Kimberly-Clark had told AIM previously. He had cited a few key drivers: “Access to good talent and real innovation, a supportive ecosystem, and the ability to support the scaling of our solutions and improve our speed to market globally.”

At the core of this transformation is the pivot towards data-driven innovation. Over 185 GCCs have established dedicated AI/ML Centres of Excellence (CoEs), while more than 30 innovation centres have been launched in just the past few years, demonstrating that Indian hubs of MNCs are committed to innovation, leveraging the country’s vast talent pool.

A BCG report notes that only 8% of GCCs currently lead in innovation, but over 90% are developing AI CoEs. Today, GCCs design AI-driven supply chains, customer intelligence engines, and analytics tools — moving beyond traditional back-office roles.

Beyond its business goals, eBay also intends to partner with universities and government agencies in India, mirroring its US collaborations, to build a robust R&D pipeline. By engaging PhD students and researchers, the company aims to harness their expertise for collaborative innovation projects.

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