India's Flipkart raises $1.4 bln from Tencent, eBay, Microsoft

MUMBAI, April 10 (Reuters) - India's top e-commerce firm

Flipkart has raised $1.4 billion from Tencent

Holdings Ltd, Microsoft Corp and eBay Inc

, the company said in a statement on Monday.

Flipkart will have a valuation of $11.6 billion after the

latest funding round, which was its biggest ever, the statement

added.

The news comes amid strong but unconfirmed speculation that

Flipkart is looking at a potential takeover of smaller rival

Snapdeal.

As part of the fundraising, eBay invested $500 million in

Flipkart for a stake. In exchange, the two

companies will merge their operations in India and Flipkart will

own and operate eBay's business in the South Asian country when

the deal closes later this year.

EBay said in a separate statement it did not expect the deal

to have any "material impact" on its guidance provided in

January.

(Reporting by Sankalp Phartiyal; Editing by Rafael Nam)