Snapdeal approved acquisition value $950 million by Flipkart

Snapdeal is rumored to have received a Flipkart offer that a few days ago filed for a US$900 - US$950 million acquisition. The Delhi-based company Snapdeal is reported to have accepted an acquisition offer by the Bengaluru-headquarterd company, Flipkart, which had previously revised up to US$950 million.

Tinuku Snapdeal approved acquisition value $ 950 million by Flipkart

Two South Asian e-commerce giants have made long talks for the most strategic move by both. A source said Wednesday that the online market of Snapdeal had agreed on a Flipkart takeover bid of US$900 - US$950 million.

Snapdeal approved the Flipkart offer submitted a week ago. SoftBank from Japan as the biggest investor in Snapdeal wants to finalize the deal and take equity stake in Flipkart to benefit from India's booming online retail market.

Flipkart and Snapdeal have had a long history of tough competition to dominate the South Asian market. The acquisition by Flipkart means the company is doubling its strength to combat the fight against larger rivals is Inc. which has provided an additional Rs1,680 crores to Amazon India.

India's emerging e-commerce sector has a market of 1,324 million people in the midst of a fierce war between Amazon, Flipkart and Amazon India. Competing in India is the first step to master the South Asian market. To this day Snapdeal and Flipkart declined to comment on the latest decision.

A 2016 report noted that e-commerce in India has grown at an annual growth rate of more than 50 percent in the last five years and the growth rate is expected to continue with online sales reaching US$35 billion by 2020.

If the merger is completed it will be one of the largest acquisitions in Indian e-commerce space. Negotiations have been running for about five months involving Snapdeal shareholders who are also board members are SoftBank, Nexus Venture Partners, Kalaari Capital and two co-founders.