Chinese know-how conglomerate Tencent has purchased stake price USD 264 million (about Rs 2,060 crore) in Flipkart from its co-founder Binny Bansal by way of its European subsidiary, based on official paperwork. Singapore-headquartered e-commerce agency Flipkart has operations in India solely. Bansal holds round 1.84 per cent stake in Flipkart after promoting a part of his stake to Tencent Cloud Europe BV.
The transaction was accomplished on October 26, 2021 and was shared with the federal government authorities at the start of the present monetary 12 months. Post the transaction, Tencent arm holds 0.72 per stake in Flipkart which is valued at round USD 264 million, as per final valuation of USD 37.6 billion disclosed by the e-commerce agency in July 2021.
The firm’s valuation surged to USD 37.6 billion after elevating USD 3.6 billion (about Rs 26,805.6 crore) in funding spherical led by Singapore’s sovereign wealth fund GIC, CPP Investments, SoftBank Vision Fund 2 and Walmart. DisruptAD, Qatar Investment Authority, Khazanah Nasional Berhad in addition to marquee traders Tencent, Willoughby Capital, Antara Capital, Franklin Templeton and Tiger Global additionally participated within the funding spherical. The transaction between Bansal and Tencent passed off after the July funding spherical.
Sources stated the transaction passed off in Singapore however Flipkart knowledgeable Indian authorities about it as a accountable entity and that the transaction doesn’t fall beneath purview of ‘Press Note 3’ which requires scrutiny of funding that any Indian firm will get from international locations sharing land border with India.
While there are a number of firms working in India by which Tencent has made funding, the federal government has banned some gaming apps together with PUBG Mobile, PUBG Mobile Lite which had been printed by Tencent Group. E-mail question despatched to Flipkart and Bansal didn’t elicit any reply.
Source: www.financialexpress.com”