- In a landmark win for e-commerce in India, three global tech giants have made the largest investment in Flipkart’s 10-year history as well as in India’s internet sector
- eBay India becomes part of the Flipkart Group, spelling benefits galore for customers and sellers on both Flipkart and eBay
Banglore, India, San Jose, CA, USA, Shenzen, China, April 10, 2017/Team Estrade//– The biggest investment in Flipkart’s 10-year history comes at an opportune moment for e-commerce in India. Tencent, eBay and Microsoft have made investments aggregating to $1.4 billion in Flipkart, India’s leading online marketplace. 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.
Tencent, a leading provider of internet value-added services in China, joins as a strategic investor, bringing experience in linking social networking and e-commerce. Tencent will lend significant expertise to Flipkart as it furthers its leadership position across the e-commerce market in India.
eBay India (ebay.in) is now part of the Flipkart Group
In another major announcement, today, both Flipkart and eBay, agreed to jointly pursue eCommerce opportunities in the Indian market. In exchange for an equity stake in Flipkart, eBay will make a $500 million cash investment in and sell its eBay.in business to Flipkart. Flipkart will own and operate the eBay.in business upon the close of the transaction. eBay and Flipkart have also entered into an exclusive agreement in which they will jointly pursue cross-border trade opportunities to make eBay’s global inventory accessible to more India consumers, while eBay’s millions of active buyers globally will have access to more unique Indian inventory provided by Flipkart. Thus, sellers on Flipkart will now have an opportunity to expand their sales globally.
“The combination of eBay’s position as a leading global eCommerce 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. “eBay is committed to winning in India in partnership with Flipkart. Our exclusive global trade partnership will allow eBay and Flipkart to reach even more consumers around the world.”
“This partnership between Flipkart and eBay is the coming together of two pioneering innovators who have disrupted commerce by applying technology. It bodes well for Indian and global customers, sellers and the wider eCommerce ecosystem. eBay.in has built a strong presence in India over the years and we hope to take it to greater heights as part of the Flipkart group,” said Binny Bansal, Group CEO, Flipkart.
Upon the close of the transaction, which is expected later this year, Flipkart will acquire eBay’s buyers in India. eBay will remove the number of active buyers in India from its reporting during the quarter in which the transaction closes. eBay does not expect this transaction to have a material impact on its guidance provided on January 25, 2017.
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 eBay.in business to Flipkart. eBay.in will continue to operate as an independent entity as a part of Flipkart.
A landmark deal for Flipkart and for India
The Flipkart founders added that this was a “landmark deal for Flipkart and for India” and hailed it as an endorsement of the Indian startup’s tech prowess, innovative mindset and its potential to disrupt traditional markets. Sachin Bansal and Binny Bansal met as engineering students during their final-year summer project at Indian Institute of Technology – Delhi. In 2007, after moving to Bangalore, the duo started Flipkart on a modest budget and within a few years led its explosive growth to make Flipkart India’s leading e-commerce marketplace.
On its ten-year odyssey, the Flipkart Group has grown to encompass Myntra and Jabong, India’s leading online fashion destinations, and PhonePe — the leading UPI-based app that provides a cashless and seamless payment experience. Flipkart’s success has also emboldened a generation of Indian startups and entrepreneurial ventures, fanning the zeal of entrepreneurs and attracting big investments in the sector.
About eBay
eBay Inc. (NASDAQ: EBAY) is a global commerce leader including the Marketplace, StubHub and Classifieds platforms. Collectively, we connect millions of buyers and sellers around the world, empowering people and creating opportunity through Connected Commerce. Founded in 1995 in San Jose, Calif., eBay is one of the world’s largest and most vibrant marketplaces for discovering great value and unique selection. In 2016, eBay enabled $84 billion of gross merchandise volume. For more information about the company and its global portfolio of online brands, visit www.ebayinc.com.
About Flipkart Group
The Flipkart Group is India’s largest e-commerce marketplace and includes group companies Flipkart, Myntra, Jabong and PhonePe. Launched in October 2007, Flipkart offers over 80 million products across 80+ categories and is known for pioneering services such as Cash on Delivery, No Cost EMI and easy returns – innovations that made online shopping more accessible and affordable for millions of customers. Together with Myntra and Jabong, which hold dominant positions in the online fashion market, and PhonePe, India’s first UPI based payment app with offerings in nine languages, the Flipkart Group has led the transformation of commerce in India. www.flipkart.com
Forward-Looking Statements
This press release contains forward-looking statements relating to, among other things, the future performance of eBay Inc. and its consolidated subsidiaries. These statements are based on eBay’s current expectations, forecasts and assumptions and involve risks and uncertainties. Actual results could differ materially from those predicted or implied in this press release for a variety of reasons. You can find more information about risks, uncertainties and other factors that could affect our operating results in our most recent Annual Report on Form 10-K and subsequent quarterly reports on Form 10-Q, copies of which may be obtained by visiting eBay’s Investor Relations website at https://investors.ebayinc.com or the SEC’s website at www.sec.gov. You should not rely on any forward-looking statements. All information in this press release is as of April 10, 2017, and we do not intend and undertake no duty to update this information.
SOURCE: https://stories.flipkart.com & https://www.ebayinc.com/stories/news
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