Tencent, eBay and Microsoft pile into India’s Flipkart as it eyes Amazon
The online retailer’s latest fundraising round is its biggest to date — but its valuation has shrunk by a third in the past two years as competition heats up
Mumbai — India’s top e-commerce firm Flipkart has raised $1.4bn in its biggest fundraising to date as it takes on US tech giant Amazon.com for a larger share of the country’s burgeoning online retail market. Tencent, Microsoft and eBay participated in the funding round, Flipkart said in a statement on Monday, which will value the Indian company at $11.6bn. That is lower than the $15bn valuation it achieved at its last fundraising in 2015, reflecting how competition has intensified. India is the world’s fastest-growing internet services market, as a rising middle class increasingly shops online. In 2016, Amazon announced that it would invest more than $5bn in India, and has recently expanded into online video and grocery shopping in the country. The fundraising also comes amid speculation Flipkart may be interested in a takeover of smaller rival Snapdeal. Local media have reported SoftBank is keen to sell its stake in Snapdeal, India’s third-biggest e-commerce player, in exchange for...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.