10 Years of Flipkart And Its Growth
India's top e-commerce Flipkart has just closed around funding of $1.4 billion. With this the Bengaluru-based company gets a huge war to take on US-based rival Amazon.
Flipkart has announced its hugest funding in its 10-year history. The $1.4-billion deal is led by China’s TenCent with an investment of $700 million while eBay Inc will contribute $500 million. Software giant Microsoft will put in $200 million to round off the deal.
This marks one of the largest capital infusion for any privately-held Indian internet venture and surpasses the earlier high set by Flipkart itself when in July 2014 it picked up $1 billion and set the stage for a funding boom in the local start-up ecosystem.
Flipkart is also buying rival eBay's Indian operations. The US-based eBay will receive Flipkart stock worth $200 million in lieu of its Indian operations. eBay and Flipkart have also entered a best and exclusive agreement in which they will jointly pursue cross-border trade opportunities.
eBay.in will continue to operate as an independent entity, maintaining its brand, business and operations said by Co-founder Binny Bansal.
The funding around values Flipkart at $11.6 billion, which is lower than its peak valuation of $15 billion but is still being considered a coup for a company that had been hit by steep valuation markdowns by its own investors last year.
The company's new valuation sets the stage for merger with Indian rival Snapdeal. Earlier this week, Snapdeal CEO Kunal Bahl confirmed merger talks, but he didn't disclose the name of the company.
With Snapdeal's purchase, Flipkart will get a deep-pocketed investor in the form of Japan’s SoftBank
"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," Flipkart co-founders Sachin Bansal and Binny Bansal said in a statement. Both the Bansals are IIT-Delhi graduates who co-founded the company in 2007.