By Newley Purnell

NEW DELHI--Indian e-commerce startup Flipkart Group said Monday it has raised $1.4 billion from technology heavyweights Microsoft Corp., eBay Inc. and Tencent Holdings Ltd., giving it a cash boost as it seeks to combat Amazon.com Inc.'s rapid growth in the country.

Bangalore-based Flipkart, which was founded in 2007 and sells everything from smartphones to jeans, said in a statement that the investment values the company at $11.6 billion post-fundraising. That is lower than its $15 billion valuation when it raised funds 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 largest fundraising round ever.

Flipkart said Chinese internet giant Tencent led the round, but didn't provide a breakdown of funds by company.

Meanwhile, eBay Inc. said in a statement Monday that is selling its Indian business to Flipkart and making a $500 million cash investment in the startup for an equity stake.

Amazon has made swift gains in luring users after launching in India in 2013, with Chief Executive Jeff Bezos pledging to invest $5 billion in its operations here.

Write to Newley Purnell at newley.purnell @wsj.com

(END) Dow Jones Newswires

April 10, 2017 06:32 ET (10:32 GMT)

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