Flipkart has successfully raised $1.4-billion from an investment round led by Tencent, eBay and Microsoft. The deal is inclusive of Flipkart acquiring eBay India. eBay will be making a $500 million cash investment in Flipkart and will also sell its India operation against an equity exchange. Post the deal Flipkart will be owning and operating eBay.in business and this is also expected to help flourish the cross-border trades.
Flipkart is also expected to push eBay.in in the limelight and makes it more visible to the Indian customers all the while Flipkart will gain access to eBay’s inventory. The closure of the deal will happen by the end of the year and the latest round will now peg the Flipkart valuation at $11.6 Billion as opposed to the peak valuation of $15 billion.
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- Flipkart co-founders Sachin Bansal and Binny Bansal said in a statement
It’s further speculated that Flipkart might be eying to raise a total of $2-Billion with the additional funding coming from Snapdeal’s primary investor, Softbank. The $950 million deal between Flipkart and Snapdeal is said to exclude Freecharge which is a recharge utility company that Snapdeal had acquired for $400 million. Flipkart has been in trouble since it has not exactly been able to gain pace and Tiger Global had been hoping out for a grand exit. The company has been Tiger Global’s biggest bet in India and it reportedly holds a third of the shares. Interestingly eBay has also invested in Snapdeal and this completes the circle.