As Tencent surpassed the biggest social media company Facebook in terms of market capitalisation, we take a look at the Indian connect of the Chinese tech giant.
Tencent, a Chinese social media and video game behemoth which is also Asia’s most valued technology company recently surpassed the biggest social media company and largest profiler Facebook in the market capitalisation. A sharp surge in the share price of Tencent Holdings Ltd led the tech giant to climb up the Facebook to become the fifth-largest company in the world. The stock of Tencent had doubled the investor’s’ wealth in the year 2017 following the better-than-expected earnings of the company. As Tencent has a very strong hold in the Chinese markets, we take a look at the Indian investment of the tech monster.
Tencent’s foothold in India
Tencent has invested in more than a couple of Indian companies ranging from the oldest Indian e-commerce giant Flipkart to the homegrown digitalised cab aggregator Ola. Earlier this year in April, out of the several investments, Flipkart said that Tencent, Microsoft and eBay have invested a sum of around $1.4 billion. Tencent first investment into Indian startups was a digital healthcare platform Practo. From 2015 till 2016, Tencent invested about $140 million into Practo Technologies.
Reportedly, Tencent has also invested a sum close to $400 million in the domestic cab aggregator and the arch-rival of American competitor Uber, Ola (ANI Technologies). Tencent has also invested in the online education service provider BYJU’s, according to various news reports the amount comes as $800 million. Tencent’s Other sizeable investments include the mobile messaging platform Hike, in which it has about $170 million.
What does Tencent do?
Tencent Holdings Ltd is a Hong Kong Listed investment holding company which provides internet, gaming, social media, online advertising services, and e-commerce transactions services to users of China, the United States, Europe, and several other parts of the world. Interestingly, Tencent also operates WeChat, another mobile messaging application which faces stiff competition from Facebook’s Whatsapp.
Why is Tencent in news suddenly?
Earlier yesterday, the stock of Tencent Holdings jumped 2.4% to another record high and the market capitalisation of Tencent breached that of Facebook’s $519 billion. Tencent topped a market capitalisation clocked $531 billion and as of today’s closing price, it is still in fifth place. Only the iPhone maker Apple Inc has a market capitalisation of about $873 billion followed by Alphabet Inc, Microsoft Corp and Amazon.