This is being talked for so many days and Flipkart has finally confirmed this Flipkart Group has raised a total of $1.4 billion from Tencent, eBay and Microsof. This investment adds to an existing group of marquee investors that include Tiger Global Management, Naspers Group, Accel Partners and DST Global.
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. That is, Flipkart is valued at $10.2Bn (pre-money).
Tencent joins as a strategic investor, bringing experience in linking social networking and e-commerce.
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. Flipkart and eBay have also signed an exclusive cross-border trade agreement (we think this is a bad idea).
The eBay India deal almost feels like this.
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. Thus, sellers on Flipkart will now have an opportunity to expand their sales globally.
What about Flipkart’s acquisition of Snapdeal ?