Indian e-commerce giant, Flipkart has raised a $1.4b investment round from Microsoft, eBay and Tencent.
As part of the deal, eBay will sell its India business topped up with $500m cash to Flipkart for equity, but will continue to operate as an independent entity.
“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,” said Devin Wenig, president and chief executive officer, eBay Inc.
Tencent joins as a strategic investor, with its experience in joining social networking ad e-commerce, and will lend its expertise to Flipkart.
“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.
This is the largest round Flipkart has raised, and sees these three tech giants join other investment partners such as Naspers Group, Tiger Global Management, Accel Partners and DST Global.
“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,” said Sachin Bansal and Binny Bansal, founders of Flipkart, in a press release.