MUMBAI: Online Indian retailer Flipkart.com has acquired its weaker rival LetsBuy.com, a specialised e-commerce site.

The part-cash, part-stock deal is estimated to be around $25 million.

Letsbuy will reportedly continue to operate independently under its current management.

Flipkart co-founder and CEO Sachin Bansal said, "This acquisition fits into our strategy of building dominant shares in all categories we operate in. We are already leaders in the books and media verticals. Given that we managed to build a leadership position in consumer electronics as well since its launch in early 2011, it made sense for us to consolidate when we saw this opportunity."

Letsbuy.com founder and CEO Hitesh Dhingra averred, "We believe that our expertise in computers, communication and consumer electronics categories, matched with Flipkart‘s superior technology and supply chain, can be a killer combination. The Company had a choice to raise a large round of funding as well. However, aligning our business with the largest player in the market made sense as the resultant synergies will guarantee our customers the best possible service, price and selection."