Bengaluru: Chinese gaming and social media group Tencent has invested $62.8 million in Flipkart’s $1.2 billion round, regulatory filings in Singapore showed. Filings were sourced from business intelligence platform Paper.vc that says Tencent owns 4-5.3% in Flipkart Pte, the Singapore-based holding company.
On July 14, US retail giant Walmart said that it had led a $1.2 billion investment in Flipkart’s commerce business, valuing it at $24.9 billion. Walmart already owns around 80% in the Bengaluru-based online retailer.
Though the investment itself is small, it is significant since Flipkart is the most valued internet company in India and has come at a time when tension between India and China is on the boil.
Since April, the government has taken multiple steps to limit China’s exposure to Indian businesses, including revising its foreign direct investment regulations as well as banning Chinese apps.
On Tuesday, Tencent said it would open a new office in Singapore to be its regional hub for Southeast Asia.
The investment has come within months of India opening up for business after a nationwide lockdown, and at a time when the Indian online retail battleground has been redrawn with Reliance Jio’s plans to aggressively enter online commerce.
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