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.

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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.