Founded by former Amazon employees Binny Bansal and Sachin Bansal in 2007, Flipkart controls almost 40% of India’s online retail market, as per Forrester, a research firm.

Indian local news daily, Mint has reported citing sources familiar with the matter at hand, Amazon.com Inc is likely to place an offer to acquire its Indian peer Flipkart, which is currently in talks with Walmart Inc to sell a stake in its company.

According to the sources, it is more likely that a deal will go through with Wal-Mart rather than Amazon.com, said sources.

While Flipkart did not immediately respond to a request seeking comment, Amazon declined to comment.

In its bid to challenge Amazon.com, Wal-Mart is in talks to acquire a 40% stake in Indian e-commerce giant Flipkart and thus pose a direct challenge to Amazon in Asia’s third-largest economy.

As per Mint’s report, Wal-Mart’s wants to purchase a stake through a mix of primary and secondary share purchases in a deal that could Flipkart’s valuation touch $21 billion.

Further, this deal, with Wal-Mart, is likely to also help Flipkart fight Amazon.com in India.

Already Amazon is expanding aggressively in the Indian market and plans on including grocery deliveries which analysts tip as the next big battleground for the country’s e-commerce sector.