The new financing round we had talked about here, is official now.
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.
- Fight for India Intensifies: Flipkart May Buy Snapdeal, and May Merge With eBay India
- Fight For India: Alibaba Goes Paytm, Snapdeal Cuts Costs, Flipkart Cuts Merchant Fees
- Fight for India: Flipkart is Planning Private Labels While Still Ahead of Amazon And More
- Tiger Global Wants Flipkart to Be IPO-Ready By 2018/19. But What’s the Growth Strategy?
- Flipkart Is in Turmoil, as the Company Tries to Grow Up
- How Flipkart Is Planning to Defeat Amazon: Cutting Costs & Getting Inspired by Jet.com