News Update

Tencent buys stake worth $264 million in Flipkart from Binny Bansal

• ByStartupStory     |    June 13, 2022

Tencent, a Chinese technology conglomerate, has acquired a stake in Flipkart worth $264 million (approximately Rs 2,060 crore) from its co-founder Binny Bansal via its European Subsidiary. 

Flipkart is headquartered in Singapore but operates solely in India. Bansal now owns approximately 1.84% of Flipkart after selling a portion of his stake to Tencent Cloud Europe BV. 

The transaction was completed on October 26, 2021, and it was shared with government officials at the start of the current fiscal year. 

Following the transaction, Tencent’s arm now owns 0.72% of Flipkart, which is worth approximately $264 million based on the e-commerce firm’s most recent valuation of $37.6 billion disclosed in July 2021.

The company’s valuation increased to $37.6 billion following a funding round led by Singapore’s sovereign wealth fund GIC, CPP Investments, SoftBank Vision Fund 2 and Walmart. The funding round was also attended by DisruptAD, Qatar Investment Authority, Khazanah Nasional Berhad, and marquee investors Tencent, Willoughby Capital, Antara Capital, Franklin Templeton, and Tiger Global. 

Bansal and Tencent completed their transaction following the July funding round.

While Tencent has invested in several companies in India, the government has banned some gaming apps, including PUBG Mobile and PUBG Mobile Lite, which were published by Tencent Group.

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