Largest ever deal in Indian e-commerce, Flipkart buys e-Bay
Country's largest e-commerce marketplace Flipkart announced that it has raised a total of USD 1.4 billion from Tencent, eBay and Microsoft, confirming the speculation floating around the biggest ever fund raise in the Indian startup ecosystem. This was a down round for the company as post the latest funding round, Flipkart will be valued at over USD 11.6 billion. It was valued at USD 15.2 billion in May 2015, at its last funding round.
The company has lost 23.6 percent in value since its last big funding round of USD 700 million in July of 2015.While the down round may impact investors such as Stead view Capital and Morgan Stanley who invested in 2015, early investors such as Tiger Global and Accel Partners are likely to gain in this round. The devaluation also indicates Indian e-commerce companies have lost sheen with investors as they struggle to hit a path to profitability, even as Amazon keep on investing billions in India.
The investment by eBay is accompanied by a strategic commercial agreement with Flipkart. In exchange for an equity stake in Flipkart, eBay is making a cash investment in and selling its India business to the company. eBay India will continue to operate as an independent entity as a part of Flipkart.
USD –American dollar –the value of one American dollar is currently RS 64.69.
E-commerce company – An Electronic Commerce company is a company which sells its product through online mode.
Flipkart is an electronic commerce company headquartered in Bangalore, Karnataka. It was founded in 2007 by Sachin Bansal and Binny Bansal.The company is registered in Singapore. In April 2017, the company was valued at $11.6 billion.