Flipkart reportedly to acquire eBay India

India's startup poster boy Flipkart is planning to acquire eBay India’s operations as part of its latest funding round of $2billion, according to a Factordaily report.

Earlier this week, Bloomberg reported 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, a valuation lower than its previous close of $15Bn, but still significant and considerable enough in the current scenario of funding crunch and mark-downs.

eBay hasn't had a great time in India since its launch in 2004 and is a distant sixth in terms of market share in Flipkart, Amazon, Shopclues, Paytm and Snapdeal in India’s $15 billion e-commerce market. According to filings with the Registrar of Companies, eBay 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.

Interestingly, the fundraising round will see the likes of Tencent leading it, by putting in a massive $500 Million with eBay and Microsoft as backers.

The report also says that Flipkart’s talks with Walmart to raise funds have not closed and the US retailer could invest in the company in the medium term.

Flipkart has been struggling to raise funds for the past few months, and this funding round will be critical for the company to prepare its war-chest to take on arch-rival Amazon.