As India’s biggest ecommerce acquisition report, Flipkart is set to acquire eBay India’s operations. The deal is structured as part of a $2 billion capital raising. This replenishes its war-chest in its fight with Amazon for market share on its home turf.

Two people familiar with the talks told FactorDaily that eBay’s India unit, which is a distant sixth in terms of market share after Flipkart, Amazon, Shopclues, Paytm and Snapdeal in India’s $15 billion e-commerce market, will get folded into Flipkart as part of the transaction.

The latest fundraising, led by Chinese internet giant Tencent which is putting in over $500 million, also has eBay and Microsoft as backers, the two people said.