Indian e-commerce giant, Flipkart is acquiring eBay India in a deal that would be part of a $2 billion capital raising.
eBay India, which currently stands in the sixth position in India’s e-commerce arena, will get folded into Flipkart, Factordaily reported quoting sources.
A Bloomberg report of 20 March said that Flipkart had closed in on $1 billion as a part of the deal and was looking for a billion more. The company, however, has not commented on the funding or the acquiring of eBay India.
According to the Bloomberg report, Flipkart had secured the $1 billion on Friday with the backing of Microsoft Corp, EBay Inc and Tencent Holdings Ltd. But the company’s valuation at $10 billion, saw a decline from the its $15.5 billion valuation in 2015.
Flipkart has been in an intense battle with Amazon to get a stronghold on the fast-growing Indian market.
eBay launched its operations in India in 2004, much before Flipkart’s birth and Amazon’s entry, but fell behind in the fast-paced market.