Wal-Mart is considering up to a $1 billion investment into India’s Flipkart, according to Bloomberg, as the world’s largest retailer looks to battle Amazon in the e-commerce turf war.
The investment, if completed, would give Wal-Mart a minority stake in Flipkart. Bloomberg reports the deal is in advanced talks, but is still being negotiated.
Flipkart, founded in 2007 by former Amazon employees, has risen as India’s top online retailer. Last week it crossed the 100-million user mark.
Analysts at CB Insights estimated Flipkart’s valuation at roughly $16 billion. An influx of cash could help Flipkart fight a rocky regulatory environment.
The deal could give Wal-Mart a way into a large online presence in India. Flipkart would have access to Wal-Marts global supply chain.
The Financial Times first reported the deal was in preliminary talks on Tuesday.
Wal-Mart and Flipkart were not immediately available for comment.