However, the offer was rejected by the Snapdeal's board which felt the amount undervalues the company as the due diligence report is clean.
"The first offer has been rejected but talks are still on. It is an ongoing discussion," said one of the sources.
SoftBank, the Snapdeal's largest investor, has been proactively mediating the sale for the past few months. The board also has representation from Snapdeal founders (Kunal Bahl and Rohit Bansal), NVP and Kalaari Capital.
Sources said Ernst & Young, which was roped in by Flipkart to conduct a due diligence on Snapdeal, submitted its report a few days ago, following which the offer was made.
Compared to a valuation of about $6.5 billion in February 2016, the sale to Flipkart could see Snapdeal being valued at about $1 billion.
SoftBank has already written off over $1 billion on valuation of its investment in Snapdeal.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)