Security guards are seen at Amazon's Bangalore office. Photo: Reuters

US e-commerce giant Amazon is moving against world’s biggest retailer Walmart to try to scuttle the latter’s move to take control of India’s largest e-commerce firm Flipkart.

With Flipkart in advanced talks with Walmart Inc. on selling a majority stake, Amazon may submit a rival offer to buy the Indian company, Mint newspaper has reported. Previously, the US giant had exploratory talks about buying Flipkart.

Walmart is in talks to buy 55% of Flipkart via the purchase of a mix of primary and secondary shares in a deal that could value Flipkart at US$21 billion, the daily said.

Flipkart investors Tiger Global Management, Naspers, Accel Partners, IDG Ventures and others are expected to sell much or all of their shares in the Flipkart-Walmart deal, they said. But secondary share purchases would allegedly happen at a lower valuation.

Launched in 2007, Flipkart has raised more than $6 billion so far. It also owns fashion businesses Myntra and Jabong, eBay India and mobile payments firm PhonePe.

Flipkart is seen as an attractive asset globally, given the long-term potential of India’s enormous market.

A sale to Walmart for more than $20 billion would be a stunning rebound for a company that struggled against Amazon’s India arm in its initial years.

Asia Times Financial is now live. Linking accurate news, insightful analysis and local knowledge with the ATF China Bond 50 Index, the world's first benchmark cross sector Chinese Bond Indices. Read ATF now.