Flipkart is preparing for fresh capital, may trim burn rate to $20 million

$4 is preparing to $4of around $800 million, or Rs 5,400 crore and settle to a valuation of $10-12 billion.

However, this will be less than $15.2 billion, amount Flipkart raised in 2015.

ET reported Flipkart is going to cut its monthly expenditure by half in the backdrop of fresh funding.

"Final valuation could change depending on investor interest and terms of the deal,” ET quoted people in the know-how as saying.

They told ET that Flipkart will trim its monthly $4 to about $20 million from about $45 million about six months ago.

“The developments come at a time when Flipkart's talks with $4 for a possible investment have failed to fructify,” two people aware of the details told ET.

A spokeswoman for Walmart told ET, “We regularly meet with different companies in global retail markets, not all of those meetings lead to business transactions and we don't share details of our discussions with individual companies.”

Also, Flipkart needs to provide exits to its financial investors led by $4, who together own over 80%. Snagging a large strategic investor is expected to help meet these goals.

Flipkart did not comment on the developments.