Microsoft, eBay, Tencent Invest $1.4 Billion in India's Flipkart
April 10 2017 - 6:47AM
Dow Jones News
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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