Tencent, eBay and Microsoft have invested USD 1.4 billion in Indian e-commerce marketplace Flipkart. The latest funding round from the three technology companies, at a post-transaction valuation of USD 11.6 billion, adds to existing investors Tiger Global Management, Naspers Group, Accel Partners and DST Global.
The investment by eBay is accompanied by a commercial agreement with Flipkart. In exchange for an equity stake in Flipkart, eBay is making a cash investment in and selling its eBay.in business to Flipkart. eBay.in will continue to operate as an independent entity as a part of Flipkart.
Flipkart and eBay have also signed an exclusive cross-border trade agreement. As a result of this agreement, Flipkart customers will have access to the inventory on eBay, while eBay’s customers will have access to Indian inventory provided by Flipkart sellers. Thus, sellers on Flipkart can now expand their sales globally.
