As per Factordaily India’s Flipkart is planning to acquire eBay India’s operations in conjuction with its latest funding round of $2billion.
It was last wek itself that Bloomberg had reported about that fact that Flipkart had raised $1 billion and further aimed to raise another $1 billion in next few months. The round was reportedly closed at a valuation of $10 billion, this valuation was lower than its previous close of $15Bn, but this valuation was still very significant and considerable keeping the current scenario of funding crunch and mark-downs in mind
Ebay hasn’t been able to enjoy a good place in India since its launch in 2004 in terms of counter players like Flipkart, Amazon, Shopclues, Paytm and Snapdeal in India’s $15 billion e-commerce market.According to filings with the Registrar of Companies, eBay had reported losses of Rs 262 crore for the year ended March 2016 versus Rs 172 crore in the same year-ago period. Revenues soared to Rs 392 crore in 2015-16 from Rs 132 crore in the previous financial year.
Moreover, the fundraising round will see the likes of Tencent leading it, by putting in a massive $500 Million with eBay and Microsoft as the backers.
The report also states that that Flipkart’s is in talks with Walmart to raise funds has not closed and the US retailer could invest in the company in the medium term.
Fundraising has been little difficult for Flipkart recently and this funding round will be very critical for the company to take on its arch-rival Amazon.
Checkout Latest IT news at itvoir.com
Madhurima Goyal, From ITvoir News Desk