India’s largest online retailer Flipkart to acquire eBay India as its recent funding informs a report. In fact, Economic Times had reported last week that the talks with eBay are in a progressive stage and there will be a deal where Flipkart may be merging or acquiring the operations of India.
eBay had entered in 2004 into the Indian market. The company invested in 2013 in Snapdeal. ET had reported earlier that eBay held nearly 6% stake till 2016 March but its shareholding in the Gurgaon-based company has fallen down to single digits.
Blooomber, earlier this week, reported that Flipkart raised $1 billion and aimed to raise $1 billion in next few months. The round was closed at $10 billion which declined from 2015 Flipkart’s $15.5 billion. The round was led by Microsoft, EBay Inc. and Tencent Holdings Ltd.
Flipkart was in advanced talks with multiple investors after talks with American retail giant Walmart for a $1-billion infusion. ET in January had reported that Flipkart is in talks to raise an $800 million at a valuation of $10-12 billion.
Flipkart recently was found to be struggling to raise funds in the past few months, and this funding round was truly crucial for them as the lost a huge ground in 2015-16 to the US-headquartered Amazon. After the sale season of October 2016, Flipkart said in a statement that its sales momentum was back after it won back its market share in the key Smartphone category.