India’s Flipkart raises $1.4 billion from eBay, Microsoft and Tencent

India’s e-commerce giant Flipkart Monday announced it raised $1.4 billion from Microsoft, eBay and Tencent, valuing the company at $11.6 billion.

This is the largest funding round in Flipkart’s history. The company had raised $700 million in 2015, when it had a valuation of $15.2 billion.

“This is a landmark deal for Flipkart and for India as it endorses our tech prowess, our innovative mindset and the potential we have to disrupt traditional markets. It is a resounding acknowledgement that the home-grown tech ecosystem is indeed thriving and succeeding in solving genuine problems in people’s daily lives across all of India,” Flipkart co-founders Sachin Bansal and Binny Bansal said in a statement.

The deal with eBay is a strategic commercial agreement, according to a statement from Flipkart. EBay will sell its Indian business to exchange for an equity stake in Flipkart, But eBay will continue to operate as an independent entity as a part of Flipkart.

Tencent, the Chinese internet giant, is expanding its investments oversee and becoming a “strategic investor”. The company announced a 5 percent stake in the U.S. electric vehicle maker Tesla Inc. in March.

"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 added.

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