Flipkart raises $1.4bn from Tencent, eBay and Microsoft
Indian e-commerce giant Flipkart has raised $1.4bn in new funding from Tencent, eBay and Microsoft.
The latest investment from the three global tech giants surpasses the $1bn funding in 2014 it received from a consortium of investors.
As part of the deal, Flipkart will also take control of eBay India, which will remain an independent ecommerce site.
It has also valued Flipkart at $11.6bn with the three companies joining existing investors such as Tiger Global Management, Naspers Group, Accel Partners and DST Global, who were all part of the 2014 funding.
Flipkart 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.
American e-commerce company eBay has also bought an equity stake in the Indian firm apart from divesting its Indian business, eBay.in which will be operated as an independent entity but under the Flipkart fold.
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 maximize the opportunity for both companies in India.”
Both the e-commerce companies have also inked an agreement for exclusive cross-border trade. Following this, Flipkart customers will get access to the broad range of international inventory on eBay.
For eBay, its customers in turn will be able to buy unique Indian products on sale at Flipkart giving the Indian e-commerce firm the scope to expand its sales globally.
Image: Flipkart founders Sachin Bansal and Binny Bansal. Photo: courtesy of Flipkart.