Looks like Chinese ecommerce giant, Alibaba, plans to bring Indian ecommerce biggies under its umbrella. After investing in Paytm and Snapdeal, Alibaba is now looking out to invest in Indian ecommerce major Flipkart.
People close to the development said that the talks to invest in Flipkart is currently at nascent stage and the likelihood of a deal will depend upon Flipkart’s willingness to offer a discount on its current valuation of $15 Bn.
Flipkart’s was reported to be valued at $15 Bn after it raised $700 Mn from existing investors including Steadview Capital participating in the round.
According to a Livemint report, Flipkart has approached Alibaba to fund its operations in next 12-18 months, as that will be the time when it will have a complete burn down of its current funding.
The report also mentioned that Alibaba is in talks with Snapdeal as well to give a discount on the its current valuation of $6.5 Bn.
Though Alibaba has also invested over $830 Mn in Paytm against 30% stake but it hasn’t asked for any such commitment from the company. Primarily, Alibaba had a 20% stake in Paytm after it raised $680 Mn.