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Flipkart offer $900-950 million to acquire Snapdeal

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Tinuku ~ Flipkart prepare US$900-950 million to get Snapdeal. The Indian e-commerce giant headquartered in Bengaluru, Flipkart, is expected to make a revised bid to acquire e-commerce headquartered in New Delhi. The Snapdeal board rejected the previous offer of US$800-850 million. So far Snapdeal, SoftBank and Flipkart declined to comment cause the discussions are ongoing and agreement has not been signed.

Tinuku Flipkart offer $900-950 million to acquire Snapdeal

The new offer almost matches the initial of US$1 billion. One source said the new offer of US$900-950 million is likely to be made early next week. The Snapdeal board has rejected a takeover offer of US$800-850 million from Flipkart for feeling the amount undervalued.

SoftBank as the largest investor in Snapdeal has been proactively mediating sales over the past few months. The Snapdeal board headed by its founders are Kunal Bahl and Rohit Bansal, Nexus Venture Partners and Kalaari Capital.

Snapdeal also engaged in separate discussions to sell its two subsidiaries are Freecharge's mobile wallet operations and Vulcan Express's logistics division. The deal is also likely to close within the next few weeks. The end of the negotiations Snapdeal and Flipkart, if it happens, will mark the largest acquisition of e-commerce industry in India.

Snapdeal has failed amidst loud competition with Flipkart and the global e-commerce giant, Amazon. The Snapdeal valuation fell about US$6.5 billion in February 2016. SoftBank has abolished more than US$1 billion for investment in Snapdeal.

The Snapdeal acquisition by Flipkart is a strategic move to compete Amazon in the future. Amazon India a few days ago get fresh funds Rs1,680 Crores from headquarters in Seattle to compete head to head Flipkart in the South Asian region's market.

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