Binny Bansal sells Flenckart stake to Tencent for $ 264 million

Binny Bansal sells Flenckart stake to Tencent for $ 264 million

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.

The company’s valuation surged to USD 37.6 billion after raising USD 3.6 billion (about Rs 26,805.6 crore) in a funding round led by Singapore’s sovereign wealth fund GIC, CPP Investments, SoftBank Vision Fund 2, and Walmart. disrupt, Qatar Investment Authority, Khazanah Nasional Berhad as well as marquee investors Tencent, Willoughby Capital, Antara Capital, Franklin Templeton, and Tiger Global also participated in the funding round.

The transaction was completed on October 26, 2021, and was shared with the government authorities at the beginning of the current financial year. Post the transaction, Tencent’s arm holds 0.72 per stake in Flipkart which is valued at around USD 264 million, as per the last valuation of USD 37.6 billion disclosed by the e-commerce firm in July 2021.

The transaction between Bansal and Tencent took place after the July funding round. Sources said the transaction took place in Singapore but Flipkart informed Indian authorities about it as a responsible entity and that the transaction does not fall under the purview of ‘Press Note 3’ which calls for scrutiny of investment that any Indian company gets from countries sharing a land border with India.

While several companies are operating in India in which Tencent has made investments, the government has banned some gaming apps including PUBG Mobile, and PUBG Mobile Lite which were published by Tencent Group. An E-mail query sent to Flipkart and Bansal did not elicit any reply.

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