Chinese PUBG publisher buys $234 million stake in Flipkart

FILE PHOTO: A staff member is seen at a Tencent booth during an exhibition during the China Internet Conference in Beijing, China July 13, 2021

Chinese tech company Tencent, owner of wildly popular mobile game PubG, has bought a $264 million stake in Walmart-owned Flipkart from co-founder Binny Bansal through its European subsidiary. After selling the stake to Tencent Cloud Europe BV, Bansal’s stake in the Singapore-based e-commerce company, which operates only in India, stood at 1.84%.

The transaction was finalized in October 2021 and details were shared with the government early in the current fiscal year, news agency PTI reported. According to Flipkart’s latest valuation of $37.6 billion, the Tencent arm now owns a 0.72% stake in Flipkart.

Flipkart’s valuation rose after raising $3.6 billion or Rs 26,805.60 crore in funding from Singapore sovereign wealth fund GIC, CPP Investments, SoftBank Vision Fund 2 and Walmart. DisruptAD, Qatar Investment Authority, Khazanah Nasional Berhad as well as renowned investors Tencent, Willoughby Capital, Antara Capital, Franklin Templeton and Tiger Global also participated in the funding round, according to PTI.

Tencent bought Bansal’s share after the July funding round.

The report further adds that the deal with Tencent took place in Singapore, but Flipkart described it as a “responsible” entity, saying the transaction does not fall under a recent law which stated that it called for a scrutiny of investments that any Indian company obtains from countries sharing a land border with India.

It should be noted that although the Chinese internet conglomerate has stakes in several Indian companies, the government has banned some gaming apps, including PUBG Mobile and PUBG Mobile Lite, released by Tencent Group, following the Valley clashes. Galwan who left several Indians. Death of army and People’s Liberation Army (PLA) soldiers.