Flipkart has raised $1.4bn from Tencent, eBay and Microsoft in its 11th funding round. As per a company statement the latest investment was done at a post-transaction valuation of $11.6bn.
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.”
As eBay is making a cash investment in Flipkart in exchange for an equity stake, it is also giving its eBay.in business to Flipkart. This is the 12th acquisition of Flipkart after the acquisition of Jabong and PhonePe which was done last year.
Tencent will join Flipkart as a strategic investor.This will bringing experience in connecting social networking and e-commerce.
Martin Lau, Tencent President said, “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.”
eBay will continue to function as an independent entity as a part strategic commercial agreement with Flipkart. This agreement will also make the eBay’s global inventory accessible to Flipkart customers. On the other hand eBay’s customers will also have access to the inventory of Flipkart sellers .This will give sellers on Flipkart an opportunity to sell globally.
Devin Wenig, President and CEO of eBay Inc said, “The combination of eBay’s position as a leading global ecommerce company and Flipkart’s market stature will allow us to accelerate and maximise the opportunity for both companies in India.”
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Madhurima Goyal, From ITvoir News Desk