Flipkart still Market leader
Just yesterday, IOS reported that a news article surfaced that there may have been talks of Amazon buying Flipkart last year. However, this has now been categorically denied through another media source, with the following statement from Flipkart:
“The report is pure fiction and seems to have been constructed based on invisible “sources” that have highly imaginative minds and given to improbable flights of fancy. There have been no talks or discussions for potential sale. Flipkart continues to be the market leader in India and we are in this business for the long haul,” an email from flipkart stated.
Important April meeting
Despite Flipkart suggesting the talks of selling the company as baseless, there is no denying the fact that the company is constantly looking for funds to maintain its position as the number 1 ecommerce marketplace in the country. It recently secured a big loan from HDFC bank. It is also aiming to raise $1 billion in a down round. This comes at a clinical time after the news that Morgan Stanley devalued its shares in the company.
There has been more than a whisper that ecommerce global giant, Alibaba would be willing to buy a stake in Flipkart. Alibaba has already invested in Snapdeal and is the majority stakeholder in Paytm, with talk of a possible merger on the cards in the future.
“They (Alibaba Group) are very keen on hiking their stake in Paytm. A board meeting to be held in the third week of April at its headquarters in Hangzhou will discuss this extensively and a decision on it will be taken,” said the source.