Flipkart, India’s leading e-commerce marketplace, announced Monday that it has received investments totaling $1.4 billion from Microsoft, eBay and Tencent, taking the company’s value to $11.6 billion.
The valuation is lower than the $15 billion the company enjoyed when it raised funds in September 2015, but will expand its technology offering as it seeks to gain an increased share of India’s growing digital market.
The deal will see eBay sell its Indian business to Flipkart in part exchange for an equity stake; however, it will continue to operate as an independent entity. EBay’s investment was also bolstered by a cash lump sum of $500 million.
China’s Tencent, a leading provider of internet value-added services, will become a “strategic investor”, bringing experience in linking social networking and e-commerce.
The funding round is the largest in Flipkart’s 10-year history and sees the trio of technology firms join an existing group of marquee investors including Naspers Group, Tiger Global Management, Accel Partners and DST Global.
“We are delighted that Tencent, eBay and Microsoft â all innovation powerhouses â have chosen to partner with us on their India journey. 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,” co-founders Sachin Bansal and Binny Bansal said in a press release.