File photo. Photograph:( Reuters )
India's top e-commerce firm Flipkart has raised $1.4 billion from Tencent Holdings, Microsoft and eBay, the company said in a statement on Monday. Flipkart will have a valuation of $11.6 billion after the latest funding round, which was its biggest ever, the statement added.
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 investors that include Tiger Global Management, Naspers Group, Accel Partners and DST Global.
"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 Flipkart.
The news comes amid strong but unconfirmed speculation that Flipkart is looking at a potential takeover of smaller rival Snapdeal.
As part of the fundraising, eBay invested $500 million in Flipkart for a stake. In exchange, the two companies will merge their operations in India and Flipkart will own and operate eBay's business in the South Asian country when the deal closes later this year.
"The investment by eBay is accompanied by a strategic commercial agreement with Flipkart. In exchange for an equity stake in Flipkart, eBay is making a cash investment in and selling its eBay.in business to Flipkart. eBay.in will continue to operate as an independent entity as a part of Flipkart," stated Flipkart.
EBay said in a separate statement it did not expect the deal to have any "material impact" on its guidance provided in January.
(WION with inputs from Reuters)