A Chinese technology conglomerate company Tencent buys a stake worth $264 million in Flipkart from its co-founder Binny Bansai through a European subsidiary.
Currently, headquartered in Singapore Flipkart maintains its operation all over India. After selling his stake to Tencent Cloud Europe BV Bansal still owns 1.84% of its stake in Flipkart. The e-commerce firm disclosed in July that Tencent arm holds a 0.72% stake in Flipkart with a value of $264 million.
The company’s valuation has surged to $37.6 billion after receiving funding from Singapore’s sovereign wealth fund GIC, CPP investments, SoftBank Vision Fund 2, and Walmart. The transaction between Flipkart and Tencent took place after July. Tencent has made investments with several other companies in India. Gaming apps such as PUBG Mobile, PUBG Mobile Life were also published by the Tencent group which are banned in India.
However, Flipkart informed the Indian authorities later when the transaction took place. the transaction does not fall under the domain of ‘Press Note 3’. According to Press Note 3, any investment between two land bordering countries should take place under ‘approval route’ only and will also require a security clearance.
