By Me Yesterday: Microsoft, eBay, Tencent Pour $1.4 Billion into India’s Flipkart

The story begins:

NEW DELHI—Indian e-commerce startup Flipkart Group has raised $1.4 billion from Microsoft Corp., eBay Inc. and Tencent Holdings Ltd., taking a hit to its valuation to raise the cash it needs to defend its home market from Amazon.com Inc.

Flipkart, which was started in 2007 by two former Amazon employees, said Monday that the new investment values the Bangalore company at $11.6 billion. That allows Flipkart to retain its title as India’s most valuable startup but is still a step down from the $15 billion valuation it received during fundraising in 2015.

“This is a landmark deal for Flipkart and for India,” Flipkart founders Sachin Bansal and Binny Bansal said in the statement, calling it the company’s biggest fundraising round ever.

Flipkart said Chinese internet firm Tencent led the round, but a Flipkart spokeswoman declined to provide a breakdown of investments by company.

Separately, eBay said on Monday that it was selling its Indian business to Flipkart and was making a $500 million cash investment in the startup for an equity stake.

Published by Newley

Hi. I'm Newley Purnell. I cover technology and business for The Wall Street Journal, based in New Delhi. I use this site to share my stories and often blog about the books I read, tech trends, sports, travel, and our dog Ginger. Join the growing group of readers who get my weekly email newsletter.

Leave a comment

Your email address will not be published. Required fields are marked *