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Ebay, Microsoft, Tencent cover up Flipkart by investing $1.4 billion. Flipkart seems ready to compete with the rival Amazon India. After this investment of $1.4 billion, the company gets one step closer to represent itself in front of investors and customers. Flipkart will also buy eBay’s India business as part of the deal. Funding round values are lower than it’s peak valuation of $15 billion.
Flipkart may get more capital from Softbank if Snapdeal’s sale goes down. Softbank is one of the biggest investors in Snapdeal. Flipkart is looking to buy lower rival Snapdeal.
The funding round gives a significant victory for Flipkart chief executive Kalyan Krishnamurthy. It also increases the pressure on Krishnamurthy to carry take Flipkart to the new level of success.
eBay Invests the amount of $500 million in Flipkart, rest coming from Tencent and Microsoft, a gaming internet and social networking firm.
Flipkart and Amazon are competing at the top of India’s $15 billion online retail markets. Given Flipkart’s recent comeback, the combat between these two can closely clash this year compared to last year.
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