Bengaluru-based Flipkart, the provider of an online marketplace that’s locked in a battle with Amazon (NASDAQ: AMZN) for control of India's ecommerce market, has raised $1.4 billion from Tencent (HKG: 0700), Microsoft (NASDAQ: MSFT) and eBay (NASDAQ: EBAY). The fresh funding values Flipkart at $11.6 billion, a drop from the $15 billion valuation it saw in 2015 with a $700 million round. As part of the deal, the company has acquired eBay India, which will continue operating independently.
Flipkart is also reportedly in talks to merge with its domestic rival Snapdeal in an attempt to compete with Amazon, which has pledged to invest $5 billion in its Indian business. Snapdeal, which was valued at $6.5 billion in August, laid off hundreds of employees in February amid competition from both Amazon and Flipkart.