Mumbai, Apr 10: Amidst reports of country’s largest e-commerce company Flipkart all set to take over rival Snapdeal. Flipkart on Monday announced it has raised USD 1.4 billion from Tencent Holdings, Microsoft Corp and eBay Inc. The latest round of fund raising was the biggest ever in the history of Indian internet firm. However, Flipkart’s valuation from USD 15 billion in 2015 has came down to USD 11.6 billion in the fresh round of funding.
Interestingly, Flipkart has been in the news for past few weeks after it was reported in a section of the media that it was all set to buy rival Snapdeal. It was also reported that the deal was as good as through and announcement was expected any time. Snapdeal is backed by Japan’s Softbank Group. Amazon remains Flipkart’s biggest competitor in India.
Flipkart will operate rival eBay as the two companies merge their operations later this year while latter will invest USD 500 million in the Indian company. Flipkart had raised USD 3 billion in the previous round of funding from international investors.
Flipkart and eBay also signed exclusive cross-border trade agreement giving Flipkart customers access to eBay global inventory while Flipkart sellers will be able to sell their products to a global customer base.
Tiger Global is the biggest investor in Flipkart which was started by two former Amazon employees – Sachin Bansal and Binny Bansal. Tiger Global first invested in Flipkart in 2010 and since then has been part of all the funding rounds. Qatar Investment Firm also participated twice in the funding rounds. Other investors in the Indian e-commerce company include Naspers Group, Accel Partners, DST Global and Baillie Gifford.
Flipkart founders termed it as ‘landmark deal for Flipkart and India’ and said the funding was endorsement of the Indian startup’s tech prowess, innovative mindset and its potential to disrupt traditional markets. Flipkart Group owns several well-known Indian brands such as Myntra, Jabong, PhonePe and Ekart.