New Delhi: Indian largest ecommerce company Flipkart announced on Thursday it is acquiring eBay India as part of its fresh funding round of around USD 2 billion.
This latest move is likely going to give the company some more ammunition to fight rival Amazon for market share. Those familiar with the talks have said that Ebay’s India operations will eventually become a part of Flipkart as part of the deal, FactorDaily reported.
The ecommerce company’s latest fundraising, led by Chinese internet behemoth Tencent, also has Microsoft and eBay as backers. News agency Bloomberg had reported on March 20 that Flipkart has closed its $1 billion funding from eBay, Tencent and Microsoft. FactorDaily also reported that the round of funding is likely to be open until the total amount reaches $2 billion.
Flipkart secured its latest funding at a valuation of around $10 billion, which is way below the valuation of $15.5 billion the company witnessed in 2015. Officials, reported FactorDaily, have said that $10 billion valuation also means a lot for the company. FactorDaily also reported that Flipkart’s negotiations with US retail giant Walmart to raise funds had not closed and that the US company can likely invest in the ecommerce in the medium term.