Flipkart is the India’s biggest e-commerce based company. If we go with the recent news of the corporate world, Flipkart has raised its funding of around $1.4 billion from Tencent, eBay and Microsoft.
With an agreement to be an equity stakeholder in Flipkart, eBay has agreed to make a $500 million cash investment and sell its eBay.in empire of business to Flipkart. Though eBay will continue to operate as a separate entity from Flipkart, eBay being now a part of Flipkart will incorporate large global customers. The two companies plan to use each other’s inventory to expand sales and coverage.
On this Monday, Flipkart, the country’s largest e-commerce conglomerate announced $1.4 billion funding from WeChat-investor Tencent, Microsoft and eBay, at $11.6 billion post-transaction valuation.
“We are delighted that Tencent, eBay and Microsoft — all innovation powerhouses — have chosen to partner with us on their India journey,” said Sachin Bansal and Binny Bansal, Founders of Flipkart, in a company statement.
The expansion will no doubt bring Flipkart a high range of global customer exposure. For Tencent, India is a big opportunity, after its huge success in China with WeChat, which is known for its network effect. With its investment in Flipkart, Tencent can aim at establishing similar service in India. While the Flipkart’s Bansals have made no firm statements on a hinge or expansion of erstwhile services, it would not be wrong to assume that the company would move in that direction.
This deal and high flooding funding surely embark the impact of Flipkart in the Indian market. Let’s see if there are any more incomings of strategies from the company in near future.