Earlier this week it was reported that Flipkart has raised $1 billion from a new and existing investors and is planning for another $1 billion. Now, a latest report from Factory Daily suggests, the homegrown e-tailer is set to acquire eBay India as part of its fresh funding round of around $2 billion. The report adds that the round will stay open until it reaches $2 billion in total.
Citing two source familiar with the deal, the report said, eBay’s India unit will get merged into Flipkart. Flipkart secured its latest funding at a valuation of around $10 billion, which is below the $15.5 billion valuation, the company saw in 2015. The latest round of funding included investors from eBay, Tencent and Microsoft. eBay India head Latif Nathani, had quit the company earlier this month while last November, eBay India laid off about 100 employees at its technology centre in Bengaluru.
Flipkart has been struggling to raise funds for the past few months and the latest round will help the company sustain the tough competition from Amazon.in. Moreover, the report also added 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 e-commerce in the medium term.