India-based e-commerce firm Flipkart is set to close up to $1.5bn in funding from investors including internet company Tencent, online marketplace eBay and software provider Microsoft next week, Livemint reported today.
Flipkart operates a diversified e-commerce marketplace that lists more than 80 million items for sale.
The company will receive between $1.2bn and $1.5bn through the round, which will value it at $10bn pre-money, according to three people familiar with the matter. Payment technology provider PayPal, previously named as a potential investor, has dropped out of the running.
Flipkart closed on $1bn in funding from eBay, Microsoft and Tencent two weeks ago but the $1.5bn figure would represent an increase in that figure rather than new investment.
Talks for the round are taking place at the same time as Flipkart is reportedly in negotiations with telecom and internet firm SoftBank to acquire Snapdeal, the India-based competitor in which SoftBank holds a 33% stake and two out of seven board seats.
Flipkart may also acquire eBay’s Indian business as part of the overall deal, the Business Standard reported last month.
The $1.5bn figure could potentially be increased, a source told Livemint. Should it acquire Snapdeal, SoftBank may well invest in Flipkart and acquire part of the share held by hedge fund manager Tiger Global Management, which stands between 30% and 33%.
Local media reports have stated the overall amount SoftBank would look to provide to the merged company would be $1.5bn.
Flipkart had raised about $3.1bn in overall funding prior to the latest round, and was valued at $15.5bn when it last raised funding, in a $700m round in 2015.
The company’s earlier investors including e-commerce group Naspers, media firm Bennett, Coleman & Co, IDG Ventures India, Steadview Capital, Baillie Gifford, Greenoaks Capital, Iconiq Capital and T. Rowe Price.