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Flipkart in talks to raise US $800 million to strengthen operations

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E-commerce major is in advanced stage of discussions to raise about US $800 million to further strengthen its operations in a bid to take head on the competition from American rival .

Flipkart in talks to raise about US 0 million to strengthen operations
The fresh funding would help the company stave off competition from rivals like Amazon as well as latest entrant Alibaba

According to a PTI report: The funding, however, would come at a much lower valuation of about US $8-9 billion, sources close to the development said.

The e-tailer had last raised funds in July 2015 at a valuation of US $15 billion.

The sources told PTI that the fresh round would see participation from both existing and new investors.

When contacted, a Flipkart spokesperson was quoted by PTI as saying: “As a company policy, we do not comment on market speculations”.

Till now, Flipkart is estimated to have raised over US $3 billion with investments coming in from , , and .

However, the company continues to report substantial losses as it pumps in funds into building logistics infrastructure and marketing blitz.

Flipkart has also seen several investors marking down their investments a number of times in the past few months.

Earlier this month, a mutual fund managed by Morgan Stanley had marked down the value of its holding in Flipkart for the fifth straight quarter, valuing the e-commerce major at US $5.37 billion.

The fresh funding would help the company stave off competition from rivals like Amazon as well as latest entrant .

The Chinese company has been gradually increasing its stake in Indian mobile wallets and e-commerce firm and is expected to announce its formal entry into the Indian market soon.

Amazon, on the other hand, has committed an investment of US $5 billion in the Indian market.