Flipkart gets $1.4 bn funds from Tencent, eBay, Microsoft; buys e-Bay.in

Flipkart Group has raised a total of $1.4 billion from Tencent, eBay and Microsoft. 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 and comes as Flipkart gears up to drive the next phase of e-commerce growth in India. 

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. 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. 

“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. 

“We are delighted that Tencent, eBay and Microsoft – all innovation powerhouses – have chosen to partner with us on their India journey. We have chosen these partners based on their long histories of pioneering industries, and the unique expertise and insights each of them bring to Flipkart. This deal reaffirms our resolve to hasten the transformation of commerce in India through technology,” they added. 

Devin Wenig, President and CEO of eBay Inc, remarked, “The combination of eBay’s position as a leading global e-commerce company and Flipkart’s market stature will allow us to accelerate and maximise the opportunity for both companies in India.” 

“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.” 

Tencent joins as a strategic investor, bringing experience in linking social networking and e-commerce. As a leading provider of internet value-added services in China, Tencent has been at the center of innovation in social, payments and other areas. In leading this funding round, Tencent will lend significant expertise to Flipkart as it furthers its leadership position across the e-commerce market in India. 

“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 Martin Lau, President, Tencent. 

The Flipkart Group includes well-known Indian brands such as Myntra, Jabong, PhonePe and Ekart – leaders of the online fashion and lifestyle, digital payments, and supply chain & logistics segments – besides the parent company. Launched in 2007, Flipkart has driven the behavioural shift in Indian consumers, and the wide acceptance the e-commerce industry enjoys. Flipkart has amassed unparalleled scale in India through customer-centric innovations that have made online shopping a seamless, accessible and affordable experience for over 100 million Indians.