India’s e-commerce behemoth Flipkart raised $1.4 billion led by China’s internet giant Tencent, with participation from the online auction site eBay and Microsoft.
Post the investment, valuation of the Bengaluru-based company has come down to $11.6 billion.
Flipkart was earlier valued at $15.2 billion when it last raised $700 million from existing investors in July 2015.
This landmark event marked the largest capital influx for any privately-held Indian internet venture.
The e-commerce giant surpassed the earlier high of $1 billion set by Flipkart itself in July 2014.
An official press release stated that in exchange for an equity stake in Flipkart, eBay is making a cash investment in and selling its eBay.in business to Flipkart. eBay will continue to operate as an independent entity.
Tencent and Microsoft have collectively pumped $900 million in Flipkart.
There is also a rumour about Flipkart planning on acquiring the Softbank-backed Snapdeal, which will further consolidating the cash-bleeding e-commerce market.
Flipkart and eBay also signed an exclusive cross-border trade agreement so that their customers can access the inventory of each other’s sellers.
New York-based investment fund Tiger Global is the largest investor with about 30% stake in Flipkart.
Kalyan Krishnamurthy is currently the CEO and Binny Bansal is Flipkart Group CEO. While, Co-founder Sachin Bansal is now executive chairman.
eBay is the latest addition to the Flipkart Group which includes Myntra–Jabong, PhonePe, and Ekart in the online fashion, digital payments, and logistics segments respectively, besides the parent company.