eBay and Microsoft have also participated in the funding round, which values Flipkart at U$11.6 billion
India’s leading e-commerce marketplace Flipkart has raised a total of US$1.4 billion in fresh funding led by Tencent, with participation from eBay and Microsoft. This investment adds to an existing group of marquee investors that include Tiger Global Management, Naspers Group, Accel Partners and DST Global.
The latest funding round, at a post-transaction valuation of US$11.6 billion, is the largest in Flipkart’s 10-year history.
“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. It is a resounding acknowledgement that the homegrown tech ecosystem is indeed thriving and succeeding in solving genuine problems in people’s daily lives across all of India,” Flipkart founders Sachin Bansal and Binny Bansal said in a joint statement.
As part of the deal, Flipkart has also acquired eBay’s India operations. Post the deal, eBay.in will continue to operate as an independent entity as a part of Flipkart. In addition, the duo have signed an exclusive cross-border trade agreement. As a result of the partnership, customers of Flipkart will gain access to the wide array of global inventory on eBay, while eBay’s customers will have access to more unique Indian inventory provided by Flipkart sellers. Thus, sellers on Flipkart will now have an opportunity to expand their sales globally.
“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,” said Devin Wenig, President and CEO of eBay Inc.
Launched in October 2007, Flipkart offers over 80 million products across 80-plus categories. The group also owns brands such as Myntra, Jabong, PhonePe and Ekart.
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