Flipkart acquires eBay India and raises $1.4 billion in funding from global tech giants

Flipkart, the largest e-commerce company in India has acquired eBay India in a move that stands to benefit sellers and buyers on both Flipkart and eBay. Tencent, eBay and Microsoft have invested $1.4 billion (roughly Rs 9,039 crore) in Flipkart, joining a marquee of investors that includes Tiger Global, Naspers, Accel and DST Global. The Flipkart founders have said that this is a landmark deal, and indicates the potential of Indian startups.Sachin Bansal and Binny Bansal, the founders of Flipkart released a joint statement saying "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." Tencent, one of the leading providers of value added internet services in China joins Flipkart as a strategic investor, and has committed to transferring expertise to Flipkart. eBay India will continue to operate as an independent entity. However, Flipkart customers will have access to the global inventory of eBay, and eBay India customers will have access to the Indian inventory of Flipkart. eBay is selling eBay India, and making a cash investment in exchange for an equity stake in Flipkart.Martin Lau, Tencent President, said, "This strategic partnership enables Tencent to participate in the exciting opportunities in e-commerce and payments in India. We look forward to helping Flipkart to deliver compelling experiences to users throughout India, and to contribute to the development of the internet ecosystem there."Devin Wenig, President and CEO of eBay Inc said, "The combination of eBay’s position as a leading global e-commerce company and Flipkart’s market stature will allow us to accelerate and maximise the opportunity for both companies in India."