Snapdeal sale still a few weeks away, board in discussion with others

Flipkart offer does not include Snapdeal's three units in payments, logistics and e-commerce management

Flipkart has sent a second bid of $900 million to $950 million dollars to buy smaller e-commerce rival Snapdeal, sources privy to the information said.

The offer does not include Snapdeal's three units in payments, logistics and e-commerce management. While the Snapdeal board is evaluating the Flipkart offer, it is also engaged in informal talks with two listed companies, sources said.

Sources said that the talks with these two companies are happening for Snapdeal as well as Vulcan Express as part of the package for little over $1 billion. Jasper Infotech, the parent of Snapdeal, also owns Freecharge, the digital payments firm, logistics arm Vulcan Express and Unicommerce, its e-commerce management firm.

"Flipkart has sent a second bid and this time closer to what Snapdeal board demanded. However, there are talks albeit informal happening with two other companies. They want to wait and see if that fructifies. We are still looking at few weeks before anything concrete happens," said a source close to the board.

It has been more than four months since the talks began with Flipkart for the possible sale of Snapdeal. Softbank, the largest investor in the Kunal Bahl, Rohit Bansal founded company has been spearheading the discussions. While the Japanese telecom major spent weeks convincing other large investors Nexus Venture Partner and Kalaari Capital to come on board, the talks were then stuck after Flipkart sent the initial bid of close to $ 800 million. The board, however, wants to secure at least a billion dollars for Snapdeal which till last year commanded a valuation of $ 6.5 billion and was the direct and staunch competitor to Flipkart.

Till now Flipkart is the only contender that has sent a formal bid. However, the exclusivity deal with Snapdeal board has ended and the board is free to have discussions with other firms.