E-commerce major eBay Inc. has received 5.4% stake in Flipkart in exchange for its eBay India business and a $500-million cash investment.
“During the third quarter of 2017, we received a 5.44% ownership interest in Flipkart in exchange for our eBay India business and a $500 million cash investment, resulting in a cost method investment of $725 million,” said the company’s quarterly report. “The gain on disposal of our eBay India business of $167 million was recorded in interest and other, net on our consolidated statement of income.”
This is eBay’s second big investment in the Indian e-commerce market. It had earlier invested in Snapdeal and during the second quarter of 2016, sold a portion of its equity interest in Jasper Infotech (Snapdeal), stated the recent SEC filing.
One of India’s leading online marketplace Flipkart raised $1.4 billion funding from Tencent, eBay and Microsoft back in April 2017. The funding round was led by the three global technology giants, at a post-transaction valuation of $11.6 billion, adds to an existing group of marquee investors that include Tiger Global Management, Naspers Group, Accel Partners and DST Global. (Image- Yahoo News India)