Flipkart to buy eBay India in $1.4 billion fund-raising dealStaff Writer | April 10, 2017
India’s largest online retailer Flipkart has closed a mammoth funding round of $1.4 billion from Tencent Holdings, eBay and Microsoftp, in the biggest-ever start-up funding round that boosts Flipkart ability to compete with arch-rival Amazon India.
Acquisition The funding round values Flipkart at $11.6 billion
The funding round values Flipkart at $11.6 billion, which is lower than its peak valuation of $15 billion but is still considered a coup for a company that had been hit by steep valuation markdowns by its own investors last year.
eBay, which is also a minority investor in Snapdeal, will invest $500 million in Flipkart with the rest coming from Microsoft and Tencent, a Chinese social networking and gaming Internet firm.
Flipkart may get additional capital soon as it is in talks to buy smaller rival Snapdeal (Jasper Infotech Pvt Ltd). Japan’s Softbank Group Corp, which is Snapdeal’s largest investor, may put in cash into Flipkart if a sale goes through, Mint reported last week. ■