After announcing its plan to acquire Snapdeal, its struggling competition Flipkart has just raised USD1.4 billion.
The funding round was bankrolled by eBay, Microsoft, and Tencent of China.
Under the deal, Flipkart will be acquiring Ebay’s operation in India which is an exchange for its equity stake in Flipkart.
Commenting on the fundraising, co-founders Sachin Bansal and Binny Bansal said in a press release that:
“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,” co-founders Sachin Bansal and Binny Bansal said in a press release.
“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.”
Martin Lau, Tencent President said commented that “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”.
“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,”
The latest funding round now puts Flipkart’s valuation at USD11.6 billion. This is very much lower than USD15 billion valuation the company had when it raised funds in September 2015.
Flipkart was founded in 2007. The company now has raised USD4.6B in 13 rounds.
