Chinese online retail behemoth Alibaba is betting big on Indian Internet firms. After investing more than $830 million in Paytm for about 30% stake and picking up a minority stake in Snapdeal, Alibaba is now in talks to invest in Flipkart. Three individuals familiar with the matter told Livemint that the talks are still in early stage. The likelihood of a final deal depends on Flipkart’s willingness to offer a discount on its current valuation of $15 billion.
Alibaba wants a discount on valuations of Flipkart, Snapdeal
Flipkart, India’s largest e-commerce player, was valued at $15 billion in its latest funding round of $700 million. The Jack Ma-led company is also in talks with Snapdeal to increase its stake in the latter. But again, Alibaba wants Snapdeal to offer a discount on its current valuation of $6.5 billion. Both Snapdeal and Flipkart have enough cash to fund their current burn rates for 12-15 months.