Chinese Tech Company has acquired a $264 million stake in Flipkart

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• Jun 12, 2022 | Poonam Nath

Tencent's services now own 0.72 percent of Flipkart, valued at about $264 million, according to the e-commerce firm's most recent valuation of $37.6 billion in July 2021.

Digital Desk: According to official filings, Chinese technology firm Tencent purchased a share in Flipkart worth USD 264 million (about Rs 2,060 crore) from its co-founder Binny Bansal through its European company.

Flipkart, a Singapore-based e-commerce company, only operates in India.

After selling a portion of his stock to Tencent Cloud Europe BV, Bansal now owns roughly 1.84 per cent of Flipkart.

The deal was concluded on October 26, 2021, and information about it was communicated to government officials at the start of the fiscal year.

Following the deal, Tencent's investment arm now owns 0.72 per cent of Flipkart, worth roughly USD 264 million, according to the e-commerce firm's most recent valuation of USD 37.6 billion reported in July 2021.

DisruptAD, Qatar Investment Authority, Khazanah Nasional Berhad, and marquee investors Tencent, Willoughby Capital, Antara Capital, Franklin Templeton, and Tiger Global were among the investors in the funding round.

Bansal and Tencent completed their transaction after the July investment round.

According to sources, the transaction took place in Singapore. Still, Flipkart informed Indian authorities as a responsible entity, and the transaction does not fall under the purview of 'Press Note 3', which requires that any Indian company receiving investment from countries sharing a land border with India be scrutinized.

While Tencent has invested in various enterprises in India, the government has banned some gaming apps, including PUBG Mobile and PUBG Mobile Lite, which Tencent Group launched.

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