Flipkart Acquires eBay India and Raises $1.4Bn from eBay, Tencent and Microsoft

Flipkart

The new financing round we had talked about here, is official now.

Economic Times:

India’s largest e-commerce marketplace Flipkart has announced a $1.4 billion fundraise from new investors Tencent, eBay and Microsoft.

This is the largest fundraising round for Flipkart that has raised around $4.6 billion from investors like Tiger Global Management, Naspers Group, Accel Partners and DST Global among others.

The e-tailer said this capital was raised at a post-transaction valuation of $11.6 billion, down from $15.2 billion valuation in May 2015 when it had last raised funds.

Also, as was rumored before as well, Flipkart is buying eBay India:

The Flipkart funding also includes a strategic commercial agreement with eBay as per which the latter has sold its India business eBay.in to Flipkart apart from a $500 million cash investment in India’s most valuable e-commerce marketplace in exchange for an undisclosed equity stake.

Flipkart now has the ammunition to buy Snapdeal.

Make sure to read our analysis on those developments.

More on this in upcoming articles.

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3 comments

  1. […] But we can see one real and big effect of this growing opposition towards Amazon in India right now: eBay, Tencent and Microsoft just aligned themselves with Flipkart in its fight against Amazon. […]

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  2. […] Tencent recently invested in Flipkart, which is fighting Amazon and soon Alibaba in India. Alibaba bought a majority stake in India’s Paytm, a payments provider, that Alibaba is going to turn into a kind of Tmall for India with Paytm Mall. […]

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  3. […] wrote extensively about Flipkart’s recent round. Here’s CB Insights on the second and third biggest […]

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