Microsoft, eBay and Tencent Invest 1.4 Billion In India’s Flipkart

Flipkart is now valued at $11.6 billion with this new investment.

Welcome @ebayindia to the @Flipkart group! Great things in store for our customers & sellers! https://t.co/qvcbTwa4kr @eBay #FlipkartBigWin

— Kalyan Krishnamurthy (@_Kalyan_K) April 10, 2017

In a joint statement, Flipkart Co-founders  Sachin Bansal and Binny Bansal said: “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.

“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”, the statement said.

Commenting, Martin Lau the president of Tencent said: “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.”

Meanwhile, for eBay, the investment comes with a commercial deal with Flipkart. In exchange for an equity stake in Flipkart, eBay is making a cash investment in and selling it’s eBay business in India to Flipkart. Despite this, eBay.in will continue to operate as an independent entity as a part of Flipkart.

Speaking on this milestone, the President and CEO of eBay Inc., Devin Wenig said: “The combination of eBay’s position as a leading global e-commerce company and Flipkart’s market stature will allow us to accelerate and maximise the opportunity for both companies in India.”

The latest investment by Microsoft, Tencent and eBay, adds to an existing group of grounded investors which include DST Global, Tiger Global Management, Accel Partners, and Naspers Group.