Online marketplace biggie Flipkart
is all set to revise its bid to buy Snapdeal
after the latter’s board of directors rejected the first offer of nearly $800 million.
The bid which might be sent in the next few days would be close to the Snapdeal
board’s demand of a billion dollar, sources close to the board said. They added that if the terms are accepted, the deal would be completed within a month or so.
board members had earlier rejected the offer of $800 million made by Tiger Global-backed Flipkart, but sources said talks were still on. “The board is unhappy with Flipkart
pegging the valuation nearly $200 million less, even though Snapdeal
cleared the due diligence. The board is, however, hopeful Flipkart
would reconsider the offer,” sources earlier said.
SoftBank, the Snapdeal’s largest investor, has been proactively mediating the sale for the past few months.
These deals are also likely to be closed over the next few weeks.
The deal between Snapdeal
and Flipkart, if completed, would mark the biggest acquisition in the Indian e-commerce
space. One of the leading contenders in the Indian e-commerce
has seen its fortunes failing amid strong competition from Amazon and Flipkart.
has seen its valuation plummeting from about $6.5 billion in February 2016. SoftBank
has already written off over $1 billion on valuation of its investment in Snapdeal.