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”.
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 Alibaba.
The Chinese company has been gradually increasing its stake in Indian mobile wallets and e-commerce firm Paytm 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.