Monday, 10 April 2017

Flipkart raises $1.4 bn from Tencent, eBay, MicrosoftThe Total Investment & Insurance Solutions

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10 April 2017

E-commerce major Flipkart on Monday said it has raised a total of $1.4 billion from Tencent, eBay and Microsoft. The Total Investment & Insurance Solutions

The latest funding round, at a post-transaction valuation of $11.6 billion, is the largest in Flipkart's 10-year history as well as in the Indian internet sector and comes as Flipkart gears up to drive the next phase of e-commerce growth in India, a company statement said. 

This investment adds to an existing group of investors that include Tiger Global Management, Naspers Group, Accel Partners and DST Global.

"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," said Sachin Bansal and Binny Bansal, founders of Flipkart, in a statement. 

"This deal reaffirms our resolve to hasten the transformation of commerce in India through technology," they added. The Total Investment & Insurance Solutions

The investment by eBay is accompanied by a strategic commercial agreement with Flipkart. In exchange for an equity stake in Flipkart, eBay is making a cash investment in and selling its eBay.in business to Flipkart. eBay.in will continue to operate as an independent entity as a part of Flipkart, the statement said. The Total Investment & Insurance Solutions

Flipkart and eBay have also signed an exclusive cross-border trade agreement. As a result of the partnership between Flipkart and eBay, 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.

"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," said Devin Wenig, President and CEO of eBay Inc.

"eBay is committed to winning in India in partnership with Flipkart. Our exclusive global trade partnership will allow eBay and Flipkart to reach even more consumers around the world," he added. The Total Investment & Insurance Solutions

Tencent has joined the investment deal as a strategic investor, bringing experience in linking social networking and e-commerce. As a leading provider of internet value-added services in China, it has been at the centre of innovation in social, payments and other areas. 

"Flipkart is a leader in e-commerce 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 e-commerce 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," said Tencent President Martin Lau. The Total Investment & Insurance Solutions


Launched in 2007, the Flipkart Group includes well-known Indian brands such as Myntra, Jabong, PhonePe and Ekart, besides the parent company. The company offers over 80 million products across 80 plus categories.The Total Investment & Insurance Solutions

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