What is Flipkart and why would it shut eBay India down if it's (as it certainly sounds and I would expect) such a massive, ripe, profitable market?
Just to remove this possibility of being used as a weapon in competition's hand, they killed it.
They certainly didn't understand the whole use case of eBay like website but killed it because it was possible to use it for competition in consumer goods space considering it had many things that were being sold on Flipkart too
Flipkart has a history of buying and shutting down businesses.