Tencent’s stake in Flipkart is estimated to be between 4%-5.3% currently. It all started in 2015 with Alibaba investing in Paytm and Didi Chuxing backing Ola. These investments could be small, but Chinese funding the tech sector is at the core of India's economy and is significant due to the essence of tech investments and its penetration across sectors. Much of the investments from Chinese companies such as Tencent, Alibaba and CTrip into large Indian internet companies startups such as Flipkart, Paytm and MakeMyTrip have been strategic in nature. “In its filing to … Amid Tensions With China, India Warns Amazon, Flipkart Over Country of Origin Rule By Reuters , Wire Service Content Oct. 17, 2020 By Reuters , Wire Service Content Oct. 17, 2020, at 4:54 a.m. PUBG ended up being banned in India for being owned by China’s Tencent, but that hasn’t stopped the company from investing in a major Indian startup. Fantasy sports unicorn Dream11 raises $225 million: Details here, PUBG maker Tencent will engage with India for ban reversal, Chinese giant Tencent loses $35 billion after Trump's ban, Chinese giant Tencent pumps money into Flipkart: Details here, In July, Walmart announced $1.2 billion investment in Flipkart, However, things have deteriorated due to geopolitical tensions. Tencent Holdings Ltd, the Chinese tech conglomerate, has invested USD 62.8 million in Indian E-Commerce giant Flipkart through its Singapore based parent company Flipkart Pte. Walmart has roped in investment bank Goldman Sachs to explore the Flipkart IPO plan, according to a Mint report. The company's valuation exceeded $1 billion with the help of Chinese investment. Flipkart with the help of the new round of capital is gearing up for its upcoming festive season which is one of the important business periods in the eCommerce space. Most of the money was spent in … The company is now waiting for the year's Big Billion Day sale which usually lasts for four to five days starting around October's festive season and ending with Diwali. Tencent has had a smooth run in India, but this year has been different as the company has faced major hurdles due to the ongoing Indo-China border stand-off. Three years on, Chinese companies are showing increasing confidence in the Indian economy, which is growing slightly faster than China’s. Chinese investments in India is a more complex matter. In addition to enforcing the country of origin rule, New Delhi has also banned 177 Chinese mobile applications since June while Chinese goods in ports have faced extra scrutiny and delays. Hike Messenger. India was ranked 40th in the World Economic Forum's Global Competitiveness Report 2017-18; China ranks higher at 27th position. The Indian government has tightened FDI rules to mandate government approvals on capital coming from China and has also banned more than 150 apps from the company, including Tencent's famous PUBG MOBILE and PUBG MOBILE Lite. Tencent seems to have chosen to bypass the Indian government by going via Singapore. It is a cross-platform instant messaging services for smartphones. Going by reports, the larger round in question is the one that Walmart had announced a few months ago. Chinese tech giant Tencent is pumping money into Flipkart, India's leading online shopping platform. Free Shipping. BigBasket Success Story - … : for example, Alibaba’s investment in … The investment assists BigBasket in competing with the US-based Amazon and India’s Flipkart. This was not the case in China. Reports state that the capital infusion by Tencent is a part of the USD 1.2 billion raised by Walmart-owned Flipkart in July 2020. READ | Reliance Terms Reports Of 40% Stake Sale In Retail Arm To Amazon As ‘speculative’, READ | Global Recession Won’t Be As Sharp As Previously Feared: OCED. A paper by Ananth Krishnan for Brookings India, published just before the lockdown began, estimates that Chinese investments in … T he biggest investment in Flipkart’s 10-year history comes at an opportune moment for e-commerce in India. Walmart, the American retail giant, remains the largest stakeholder in Flipkart with 81.87% controlling stake, while Tencent which increased its stakes from 5% to 5.34%, remains the second-largest stakeholder. New Delhi will take a separate call on allowing Huawei to participate in the commercial deployments of the next generation technoligy in India. Amazon has often faced regulatory challenges in India. The investment had valued the firm at $24.9 billion, with Walmart's ownership rising to a significant 82%. Tencent further participated in funding rounds of the former e-commerce unicorn Flipkart, and invested in startups active in online travel (Ibibo), digital banking (Nivo) and music streaming (Ganaa) domains. Baghel waits for high command's order, After Suvendu Adhikari, Mamata's minister Rajib Banerjee hits out at 'sycophants' in TMC, Watch: Man ties dog to the car & drags down the road; arrested for animal abuse, Flipkart gets additional $62.8 Mn investment from Tencent amid India-China volatility, Reliance Terms Reports Of 40% Stake Sale In Retail Arm To Amazon As ‘speculative’, Global Recession Won’t Be As Sharp As Previously Feared: OCED, JMC Projects Bags Orders Worth Rs 1,342 Cr, Japan Exports Fall 15% In August As Pandemic Pummels Trade. Only Genuine Products. The decision to boycott Chinese products affected BigBasket in several ways. CAIT also questioned Flipkart’s recent investment of ₹1,500 crore into Aditya Birla Fashion and Retail Limited in return of a 7.8% share in the company. Thereafter, the Indian government banned another 118 apps including the popular gaming app PUBG in September after the recent flare-up on the Southern bank of Pangong Tso lake in Ladakh. As per filings sourced by paper.vc, Tencent is investing $62.8 million in Flipkart. Tencent's other investments in India include bookkeeping platform Khatabook and Pratilipi. Chinese tech giant Tencent is pumping money into Flipkart, India's leading online shopping platform. YourStory data reveals that in 2018, Chinese VCs invested in 21 startups as compa… The funding was a part of Flipkart’s $1.2 billion round. The big players like Alibaba, ByteDance, and Tencent have funded over 90 Indian startups. Chinese gaming and social media group Tencent has invested $62.8 million in Flipkart's $1.2 billion round, regulatory filings in Singapore showed. According to a February 2020 report by think tank Gateway House, China has investments in 18 of the 30 Unicorn companies in India—Zomato, Flipkart, Biju … Flipkart quiz answers September 18, 2020: Answer and win exciting rewards, Flipkart quiz answers September 17, 2020: Answer and win exciting rewards, Flipkart quiz answers September 16, 2020: Answer and win exciting rewards, Flipkart quiz answers September 15, 2020: Answer and win exciting rewards, Flipkart quiz answers September 12, 2020: Answer and win exciting rewards, Congress to change Chhattisgarh CM as per 'formula'? There have also been reports that the company is looking at selling its stake in at least one of its Indian investments - Dream11. The lineup of festivals such as Navratri, Durga Puja and Diwali is said to be the prime period of business. The capital infusion from the Chinese tech giant in Flipkart has come at a time when India and China are locked in a fierce border standoff in the Ladakh region. Founded by Bhavish Agarwal and Ankit Bhati in 2010, Ola got its first Chinese investment from … Due to the amendments, any entities from border countries cannot invest in Indian companies via automatic route and will have to pass through the scrutiny of the Indian government. Apart from the apps ban, Indian Government also took countermeasures and amended the FDI policy to keep a check on the investments made by border nations in Indian firms and start-up companies. Bengaluru: Amid heightened tensions at the border between China and India, Chinese technology conglomerate Tencent has invested nearly $63 million in Flipkart, according to regulatory filings of the holding company in Singapore. When the first incidents were reported, the Indian government took steps to counter and check the growing incidence of China-backed funds and firms investing in Indian startups. Other Chinese companies, including ByteDance and Alibaba, are also moving to Singapore to grow their footprint. Filings were sourced from business intelligence platform Paper.vc that says Tencent owns 4-5. In light of this scrutiny, and the general anti-China sentiment prevailing in India, Tencent is focusing on setting up an office in Singapore. Confederation of All India Traders (CAIT) has asked the Minister of Commerce and Industry Piyush Goyal to investigate Chinese investments into 141 … India Business News: PhonePe, the payments unit of Flipkart group, has received capital infusion of close to Rs 1,300 crore from its Singapore-based parent entity Flipkart For Flipkart and Ola, there is the added competition of Alibaba, which will be investing in India in consortium with its flagship India investee, Paytm. Back in July, the retail conglomerate had said that it as well as other existing shareholders would invest $1.2 billion in Flipkart in two tranches. Chinese investments have come under scrutiny recently in the wake of Covid-19 epidemic, which is said to have been originated in China. The investment is not big for the e-commerce company, which is valued at over $24 billion, but it comes at a time when incoming capital from the neighboring nation is facing extra scrutiny due to the ongoing border tensions. 30 Day Replacement Guarantee. Foreign Direct Investment in China by Ng Michael H. K. from Flipkart.com. The Chinese tech conglomerate has also made investments recently in India's popular music podcast streaming app Gaana which was done through its European subsidiary Tencent Cloud. This can be easily seen with the help of the large investment made by the Chinese companies in the Indian Start-up ecosystem. The objective of this investment was to take on Amazon’s growing clout in India and to tackle Flipkart, then a local leader in e-commerce. Beginning 2016, Chinese companies have poured in $2.37 billion in Indian companies, according to research firm Tracxn. The Indian government, however, has allowed Huawei and ZTE, another Chinese company, to participate in 5G trials. Ola. Investments are increasing, not just in startups but across the board in sectors. Tencent Holdings Ltd, the Chinese tech conglomerate, has invested USD 62.8 million in Indian E-Commerce giant Flipkart through its Singapore based parent company Flipkart Pte. Chinese companies have invested more than $7.4 billion in Texas over the last 15 years, much of it in the Houston area. Recently, a new … The investment is not big for the e-commerce company, which is … Reports state that the capital infusion by Tencent is a part of the USD 1.2 billion raised by … READ | JMC Projects Bags Orders Worth Rs 1,342 Cr, READ | Japan Exports Fall 15% In August As Pandemic Pummels Trade. Washington in the past has put pressure on New Delhi to keep China's Huawei out of the India's 5G deployments. “Chinese funds and companies often route their investments in India through offices located in Singapore, Hong Kong, Mauritius etc. As for Tencent, the company reportedly owns a 5% stake in Flipkart through its Singapore-based investment holding company Aceville Pte Ltd. Apart from Flipkart, Tencent has also invested in more than a dozen Indian start-ups and unicorns, including ed-tech player BYJU's, OLA, Doubtnut, Dream11, NiYO, Gaana, Hike, KhataBook, MXPlayer, MyGate, Pocket FM, Practo, Swiggy, and Udaan. Representatives for Amazon and Flipkart did not immediately respond to Reuters requests seeking comment outside regular business hours. WeChat, a popular messaging app by Tencent was also among the list of apps banned by the government. From Paytm, Flipkart To Swiggy, Big Indian Startups Are Stuffed With Chinese Money Chinese companies are one of the biggest investors in India’s startup space. Earlier in July this year, Flipkart raised $1.2 billion in a … The first app ban was followed by another 47 apps which were clones of the previously banned apps. Tencent, eBay and Microsoft have made investments aggregating to $1.4 billion in Flipkart, India’s leading online marketplace. However, Tencent’s investment in Flipkart is different, and that’s not just because of its size. 470 crore) into Flipkart according to regulatory filings made by the Walmart-owned ecommerce company in Singapore. After the violent faceoff on June 15 in the Galwan valley that led to the martyrdom of 20 Indian soldiers including a commanding rank officer, the Indian Government had banned 59 Chinese made apps or apps having any links with China, keeping in mind the data security of Indian citizens and as a means to make India self-reliant. 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