India

Flipkart take over eBay.in,raises $1.4 bn

flipkart-ebay

Bangalore, April 11: India’s leading e-commerce Flipkart announced raising $1.4 billion (Rs.9,042 crore) from Microsoft, eBay and Tencent on Monday.

“The latest funding round, at a post-transaction valuation of $11.6 billion (Rs.74,885 crore), is the largest in our 10-year history and the Indian internet sector,” stated the city-based e-commerce major in a statement here.

eBay made an unspecified equity stake cash investment in Flipkart.

However, eBay.in will continue to operate as an independent entity.

Flipkart declined to give break-up of investment with trio — global software product firm (Microsoft), US-based e-commerce major (eBay) and Shenzen-based Tencent as private equity.

“The landmark deal endorses our tech prowess and innovative mindset and the potential we have to disrupt traditional markets,” said Flipkart co-founders Sachin Bansal and Binny Bansal in the joint statement.

The huge investment is seen as an affirmation of the home-grown technology ecosystem and its ability to address the people’s daily problems across the country.

“The deal reaffirms our resolve to hasten the transformation of commerce in the country through technology,” asserted the co-founders for Flipkart..

In the 13 rounds of funding since January 2009, the company raised a huge $4.65 billion (Rs.30,038 crore at current value), including $700 million private equity from two investors in July 2015 and $700 million from 10 investors led by Steadview Capital in December 2014 when the company was valued at $11 billion.

eBay also signed an exclusive cross-border trade pact with Flipkart, which enables the latter’s customers access an array of global inventory on the former’s website.

“The pact will also give eBay customers access to Indian inventory from Flipkart’s sellers on the latter’s platform,” noted the statement.

“The combination of our position as a global e-commerce player and Flipkart’s market stature will allow us to maximize the opportunity for both companies in India,” said eBay’s Chief Executive Officer Devin Wenig in the statement.

“Our strategic partnership enables us to participate in the opportunities in e-commerce and payments in India. We look forward to helping Flipkart deliver experiences to users and contribute to the development of the internet ecosystem in India,” said by Tencent President Martin Lau.

In the previous rounds, total fund raised by Flipkart from 8 investors were $1 billion, led by Naspers and Tiger in July 2014; $210 million from four investors, led by DST Global in May 2014; $160 million from 5 investors in 2013; $200 million from four investors in July 2013; $150 million from four investors, led by Naspers in August 2012; $20 million from Tiger in June 2011; $10 million from Tiger in June 2010 and $1 million from Accel Partners in 2009.

The company also raised $40,000 from an investment in January 2009 and $100,000 from another in February 2009.

Launched in 2007, the Flipkart Group offers over 80 million products across 80 plus categories to its customers.
Wefornews Bureau

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