As reported earlier, Flipkart has finally announced that it has acquired eBay India business. The e-commerce giant has also raised a total of $1.4 billion from Tencent, eBay and Microsoft.
To start with the acquisition, eBay has sold its India business to Flipkart in exchange for an equity stake in the e-commerce platform. Both the companies have also signed a cross-border trade agreement, under which Flipkart will gain access to the wide array of global inventory on eBay, while eBay’s customers will have access to Indian inventory provided by Flipkart sellers. Further, eBay India will continue to operate as an independent entity as a part of Flipkart.
“The combination of eBay’s position as a leading global e-commerce company and Flipkart’s market stature will allow us to accelerate and maximize the opportunity for both companies in India,” said Devin Wenig, President and CEO of eBay Inc. The latest acquisition will surely strengthen Flipkart’s position in the e-commerce domain and will give a stiff competition to its arch rival Amazon in this space.
Coming to the fundraising, the latest funding round from the three global technology giants, at a post-transaction valuation of $11.6 billion, adds to an existing group of marquee investors that include Tiger Global Management, Naspers Group, Accel Partners and DST Global.
“We are delighted that Tencent, eBay and Microsoft — all innovation powerhouses — have chosen to partner with us on their India journey. We have chosen these partners based on their long histories of pioneering industries, and the unique expertise and insights each of them bring to Flipkart. This deal reaffirms our resolve to hasten the transformation of commerce in India through technology,” Sachin Bansal and Binny Bansal, Founders of Flipkart, said in a statement.