If it goes through, this could be the single largest acquisition that the Indian e-commerce sector has ever seen.
In the latest developments, Indian E-commerce giant Flipkart has supposedly renewed its talks with rival Snapdeal of acquiring the loss-making organisation and cementing the merger, which has been in talks for quite a while now. Flipkart has reportedly sent a reappraised offer of $900-950 million to Snapdeal for the acquisition of the company’s online marketplace, along with Unicommerce, an e-commerce management software and fulfilment solution provider that it had taken over back in 2015.
The deal is currently still in a preliminary phase and yet to be finalised, for which the Jasper Infotech run board of Snapdeal would be meeting to hold a discussion and consider the offer. However, the offer is almost certain to be accepted, albeit, with certain adjustments for cash and similar assets.
Previously, Snapdeal had turned down an offer of $800-850 million from the Tiger Global-backed e-commerce giant, which comes to around Rs 5,500 crore, for the takeover, and if it accepts the current offer, a sale and purchase agreement (SPA) will be negotiated by the two companies.
Snapdeal’s founders, Kunal Bahl and Rohit Bansal, along with Nexus Venture Partners, Kalaari Capital, and the company’s biggest investor, SoftBank, had been overseeing the deal for the last few months.
However, it might still be a while before the deal goes through, as no official statements have been issued from either of the two companies, and neither have they been responding to emailed enquiries. Additionally, at the moment, Snapdeal is also in the process of finalising separate deals for its mobile payments unit Freecharge, and its logistics business Vulcan Express, within the next few weeks.
In spite of having been one of the most prominent leaders in the e-commerce sector, Snapdeal had lately been suffering huge losses in the midst of still competition with rivals and market dominators Amazon and Flipkart, with its valuation falling rapidly from the $6.5 billion figure in February 2016. Additionally, more than $1 billion on the valuation of the investment in Snapdeal had already been written off by Softbank as well.
However, if the takeover of Snapdeal by Flipkart does go through, it would still be the single largest acquisition that the Indian e-commerce sector has ever seen.
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