Flipkart raises $1.4bn from investors and acquires eBay’s business in India
India-based online retailer Flipkart has announced that Tencent, eBay and Microsoft have collectively invested $1.4bn in the company, marking the biggest investment in its ten-year operating history.
The latest funding round from the three global technology companies, at a post-transaction valuation of $11.6bn, adds to an existing group of investors that include Tiger Global Management, Naspers Group, Accel Partners and DST Global.
Flipkart co-founders Sachin Bansal and Binny Bansal said: “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.
“This deal reaffirms our resolve to hasten the transformation of commerce in India through technology.”
Joining as a strategic investor in Flipkart, Tencent is an internet value-added service provider in China.
This company is expected to provide significant expertise to Flipkart with its vast experience in social networking and e-commerce.
eBay also signed a strategic commercial agreement with Flipkart.
In return for an equity stake in Flipkart, eBay has made cash investment in Flipkart. eBay will also sell its Indian business to Flipkart.
eBay.in will continue to operate as an independent entity as a part of Flipkart.
eBay president and CEO Devin Wenig said: “The combination of eBay’s position as a leading global e-commerce company and Flipkart’s market stature will allow us to accelerate and maximise the opportunity for both companies in India.”
Flipkart and eBay have also signed an exclusive cross-border trade agreement, which will enable customers of Flipkart to 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.
Sellers on Flipkart will now have an opportunity to expand their sales globally.
Besides eBay.in, Flipkart has acquired Indian fashion e-retailers Myntra and Jabong, as well as PhonePe, a UPI-based app for cashless payments, in its operating history.