Flipkart has raised $1.4 Billion funding from Tencent, eBay and Microsoft.Part of the deal involves Flipkart taking over the eBay.in business and eBay acquiring equity in Flipkart.
Sachin Bansal and Binny Bansal, founders of Flipkart said,
“This is a landmark deal for Flipkart and for India as it endorses our tech prowess, our innovative mindset and the potential we have to disrupt traditional markets.”
The funding round values Flipkart at $11.6 billion, which is lower than its peak valuation of $15 billion but still higher than the valuation it was assigned by some of its own investors last year.
They further added,
“We are delighted that Tencent, eBay and Microsoft — all innovation powerhouses — have chosen to partner with us on their India journey. We have chosen these partners based on their long histories of pioneering industries, and the unique expertise and insights each of them bring to Flipkart.”
eBay, which is also a minority investor in Snapdeal, will invest $500 million in Flipkart with the rest coming from Microsoft and Tencent, a Chinese social networking and gaming Internet firm.
eBay India will continue to operate its platform as a unit of Flipkart; it becomes the latest acquisition for Flipkart, which has bought the fashion retailers Myntra and Jabong as well as mobile payments app PhonePe in the past three years.
Martin Lau, Tencent President said,
“Flipkart is a leader in ecommerce in India, with strong operational expertise and a deep understanding of user behaviour. This strategic partnership enables Tencent to participate in the exciting opportunities in ecommerce and payments in India. We look forward to helping Flipkart to deliver compelling experiences to users throughout India, and to contribute to the development of the internet ecosystem there.”
Flipkart and eBay have also signed an exclusive cross-border trade agreement, as a result of which customers of Flipkart will gain access to the wide array of global inventory on eBay, while eBay’s customers will have access to unique Indian inventory provided by Flipkart sellers. Thus, sellers on Flipkart will now have an opportunity to expand their sales globally.