India’s leading e-commerce firm Flipkart is looking to raise up to $1 billion in its latest funding round, which could value the startup at $7 billion to $8 billion, The Financial Express reported.
The potential investors were not named, but the funding round, which is expected to close in four to six weeks, will include both new and existing investors. The startup previously raised more than $3 billion, with US hedge fund Tiger Global its largest backer.
Flipkart, established in 2007, was valued at about $11.5 billion in August 2016, down sharply from its $15 billion valuation earlier in the year as competition has intensified and funding becomes more difficult to line up.
In September media reports suggested Wal-Mart, the largest retailer in the world, was looking to acquire a minority stake in Flipkart, with an investment estimated at between $750 million and $1 billion. A source said at the time the two companies were in talks to determine the size of the stake. They were also reportedly discussing a partnership to share retail and supply chain expertise in India.
A deal with Wal-Mart would give Flipkart additional resources to compete against US e-commerce giant Amazon, which has been expanding rapidly in India. Wal-Mart only operates wholesale stores in India.
Flipkart also is facing competition from rival Snapdeal, India’s fastest growing online marketplace, which more than two years ago received an investment of $627 million from Japan’s SoftBank.