Sep 18, 2020 | Mallika Rangaiah
The Chinese Internet giant Tencent Holdings has infused $62.8 million in Flipkart's $1.2 billion funding round, as confirmed by business intelligence platform Paper.vc and as reported by the Economic Times. Paper.vc stated that as per its calculations Tencent possesses a 4-5.3% stake in Flipkart Pte, the Singapore-based parent entity.
In the month of July, the American multinational retail corporation, Walmart stated that it had driven a $1.2 billion infusion in Flipkart's commerce operations, esteeming it at $24.9 billion. Walmart as of now possesses around 80% in the Indian e-commerce firm.
Despite the fact that the infusion itself is not much, this investment becomes noteworthy owing to Flipkart being the most valued Internet organization in India and because it has emergēd at a time when pressures among India and China have been brewing.
As the COVID19 pandemic spread and the lockdown tightened, following the month of April, the government has undertaken various steps to restrict China's presence in Indian organizations, which also included reconsidering its FDI guidelines. It additionally prohibited a few Chinese and China-connected applications, a move prompted to make India independent in numerous fronts.
Recently Tencent has also stated that it plans to open another office in Singapore to serve as its local hub for Southeast Asia.
The infusion has emerged not long after the Indian nation has begun opening up for business after an across country lockdown. So far, after its latest funding round, Flipkart has presently bagged a total of $731.20 million in 2020.