E-commerce giant Flipkart signalled its aggressive stance, raising investments to the tune of $1.4 billion, in addition to acquiring eBay India. Flipkart’s current valuation stands at $11.6 billion following the deal.
News of the new round of funding came even as there were speculations regarding Flipkart’s acquisition of Snapdeal. eBay, Microsoft, and Tencent are the latest investors eyeing a piece of India’s multi-billion dollar e-commerce segment.
In addition to the investment, eBay entered into a strategic agreement wherein eBay will sell its Indian business, eBay.in to Flipkart, in addition to a cash investment. Flipkart, in return, will provide an equity stake to eBay.
While eBay.in will continue to function independently, it will help Flipkart enhance its product base, with access to eBay’s global inventory. eBay will also get access to Flipkart’s inventory, helping both entities gain traction.
The round marks the single largest investment in Flipkart since its inception 10 years ago. This also marks Flipkart’s 11th acquisition since 2010.
Flipkart acquisition trail since 2010
|FX Mart||Sep 2015|
Flipkart might be in a position to further strengthen its position if the deal with Snapdeal goes through. SoftBank, the largest investor in Snapdeal is keen to invest $1.5 billion for a 15 per cent stake in the combined entity.