The Indian e-Commerce giant Flipkart has sweetened its offer of take over of Snapdeal by USD 100 million. The offer valuation is now pegged at $900-$950 Million. Initially when Flipkart offered $800-$850 Million which tantamount to Rs.5,500 crore that was rejected by Snapdeal as it was seeking atleast $1 Billion.
Now with the revised offer which is expected to be made formally by next week, it is almost close to the asking value of the company. Softbank which is the major stakeholder in Snapdeal has declined to comment. Snapdeal faced tough competition mainly from Flipkart and Amazon and could not hold on to its bourses.
The board of Snapdeal also has representation from its founders (Kunal Bahl and Rohit Bansal), Nexus Venture Partners and Kalaari Capital who has been actively pushing for the sale before the value of the brand erodes further. Snapdeal also owns mobile recharge platform Freecharge and Vulcan Express – a logistics company.
The deal between Snapdeal and Flipkart, if completed, would mark the biggest acquisition in the Indian e-commerce space.
Snapdeal whose valuation was once pegged at $6.5 billion during its hey days has seen its value plummeting greatly as it failed to gain momentum in the e-Commerce race which is now being led by Amazon. Softbank which has seen profitable investments in its Indian investments has already written off $1Billion from the Snapdeal.