As per the latest reports, Snapdeal has accepted Flipkart’s revised buyout offer of $900-950 million. The company will seek views of its shareholders, including Ratan Tata and PremjiInvest, to finalize the proposed buyout offer.
The board of Jasper Infotech that runs the e-commerce company, has apparently approved Flipkart’s bid of $900 million-$950 million last week.
SoftBank, the largest investor in Snapdeal has been proactively mediating the deal for the past few months. Earlier this month, Snapdeal had rejected a $700-$750 million offer from Flipkart. The company had rejected the offer on the grounds that the amount was lower than its $1 billion valuations.
Snapdeal had received Rs. 113 crores from Nexus Venture Partners earlier in May. Meanwhile, Flipkart acquired eBay India and also raised $1.4 billion funding in April. Flipkart managed to secure this investment taking its total valuation to $11.6 billion from the likes of Tencent, eBay, and Microsoft.
Snapdeal, the Indian e-commerce company based out of New Delhi, was founded in February 2010. The company was started by Kunal Bahl and Rohit Bansal. Snapdeal has a number of investors including Alibaba Group, PremjiInvest, Ratan Tata, Foxconn, Temasek and BlackRock among others.
So, the buyout deal between Snapdeal and Flipkart, if completed, would mark the biggest acquisition in the Indian online market place and will affect big players like Amazon India.