Finally, Flipkart seems to be ending its fund-drought phase, which has been going on since last year. Flipkart is reportedly in talks to raise $1.5 billion from Chinese Internet giant Tencent and eBay.
According to the Economic Times report, US-based online selling platform eBay is expected to invest about $400-500 million “while discussions with Chinese internet giant Tencent and the likelihood of a potential third investor joining the round are still underway”.
Last month, it was reported apart from Tencent and eBay, Microsoft Corp, PayPal Holdings Inc and Google parent Alphabet’s investment arm Google Capital are also planning to invest up to $1.5 billion in Flipkart at a valuation of $10-12 billion.
Citing a source familiar with the matter, the report said that talks with eBay are at an “advanced stage and a strategic deal may include Flipkart acquiring or merging their India operations.”
If the deal turns out to be successful, it will also help the e-commerce platform to cover the lost valuations. Recently the company has gone through a series of valuation markdowns, trashing its valuation from over $15 billion to less than $5.5 billion.