In what is being touted as the largest e-commercce deal, Indian E-commerce giant Flipkart announced that it has acquired eBay India and raised $1.4 billion from companies like eBay, Microsoft and Tencent. However, it is being reported that eBay will continue operating as an individual entity and it had only sold off eBay India.
With this eBay has made a $500 million cash investment and Flipkart will now be valued at $11.6 billion. Flipkart made the announcement stating that “eBay India is now part of the Flipkart Group.”
“In a landmark win for e-commerce in India, three global tech giants have made the largest investment in Flipkart’s 10-year history as well as in India’s internet sector. eBay India becomes part of the Flipkart Group, spelling benefits galore for customers and sellers on both Flipkart and eBay,” Flipkart said in a statement.
— Flipkart (@Flipkart) April 10, 2017
“The biggest investment in Flipkart’s 10-year history comes at an opportune moment for e-commerce in India. Tencent, eBay and Microsoft have made investments aggregating to $1.4 billion in Flipkart, India’s leading online marketplace. The latest funding round from the three global technology giants, at a post-transaction valuation of $11.6 billion, adds to an existing group of marquee investors that include Tiger Global Management, Naspers Group, Accel Partners and DST Global,” the statement read as.
Flipkart further suggested that they chose to partner with the said companies because of long histories of “pioneering industries.”
— Sachin Bansal (@_sachinbansal) April 10, 2017
— binnybansal (@binnybansal) April 10, 2017