Flipkart denies Amazon sale talks; Alibaba to up stake in Paytm?
In a week whereInfibeamis becoming thefirst Indian ecommerce companyto launch an IPO, we are keeping a close track of the other potential deals among the big ecommerce players.
Flipkart still Market leader
Just yesterday, IOS reportedthat anews article surfaced that there may have been talks of Amazon buying Flipkartlast year. However, this has now been categorically denied throughanother 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 abig loan from HDFC bank. It is also aiming toraise $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 bewilling to buy a stake in Flipkart. Alibaba has already invested inSnapdealand is themajority stakeholderin Paytm, withtalk of a possible mergeron the cards in the future.
A news report,based on an industry sourceis now doing the rounds thatAlibabais planning on increasing its stake inPaytm.
“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.