Binny Bansal sells a share in Flipkart to China’s Tencent for Rs 2,060 crore

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

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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 percent of Flipkart.

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

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

After raising USD 3.6 billion (about Rs 26,805.6 crore) in a financing round headed by Singapore’s sovereign wealth fund GIC, CPP Investments, SoftBank Vision Fund 2 and Walmart, the company’s valuation soared to USD 37.6 billion.

Tencent, Willoughby Capital, Antara Capital, Franklin Templeton, and Tiger Global were among the investors in the funding round, as were 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 after the July investment round.

According to sources, the transaction took place in Singapore, but 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 receive investment from countries sharing a land border with India be scrutinised.

While Tencent has invested in various enterprises in India, the government has banned some gaming apps, including PUBG Mobile and PUBG Mobile Lite, which were launched by Tencent Group. An email submitted to Flipkart and Bansal received no response.