Amid sharp cut in valuation, Flipkart to lease smaller office as it slashes mega Bengaluru office deal

With Flipkart struggling with growth and raising fund, the e-commerce has substantially scaled down its need for a huge office space in Bengaluru, which it leased almost two years back.

Amid sharp cuts in their valuations, India's biggest e-commerce company is now looking forward to lease just 0.83 million sq ft office space. Initially, the agreement was for 3 million sq ft from southern property developer Embassy Group, which was subsequently downsized to 2 million before the company finally decided on the current lease deal.

The deal was made when the company was at its peak and at that time, it was the country's single largest office lease deal.

Flipkart has not raised funds in the past 18 months, even as it defends its leadership position in a bruising marketplace war with Amazon.

Embassy Office Parks chief executive Mike Holland confirmed the development, but denied there was a dispute between the two companies.

"We have had conversations with them and see this as another normal part of any business, which provides opportunity for us to add some more space into the markat a time when there is not so much available," Holland told ET.