After Snapdeal rejects offer, Flipkart asks for a month's time to come up with revised deal
The deal between Snapdeal and Flipkart, if completed, would mark the biggest acquisition in the Indian e-commerce space.
- Jul 6, 2017,
- Updated Jul 7, 2017 8:25 AM IST
Indian e-commerce giant Flipkart has asked Snapdeal a time period of 30 days to come up with a revised offer, reported CNBC-TV18. The new development comes after Snapdeal board rejected a takeover offer of USD 800-850 million (around Rs 5,500 crore).
The report further quoted a source as saying, "Flipkart wants to have the extended comfort that even if they have to go back and forth a few more times, there will still be enough time and that they are the only ones and nobody else can pick up and take it away".
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.
The deal between Snapdeal and Flipkart, if completed, would mark the biggest acquisition in the Indian e-commerce space.
ALSO READ: Snapdeal board rejects Flipkart's $850 million offer
One of the leading contenders in the Indian e-commerce space, Snapdeal has seen its fortunes failing amid strong competition from Amazon and Flipkart.
Compared to a valuation of about USD 6.5 billion in February 2016, the sale to Flipkart could see Snapdeal being valued at about USD 1 billion.
SoftBank has already written off over USD 1 billion on valuation of its investment in Snapdeal.
Indian e-commerce giant Flipkart has asked Snapdeal a time period of 30 days to come up with a revised offer, reported CNBC-TV18. The new development comes after Snapdeal board rejected a takeover offer of USD 800-850 million (around Rs 5,500 crore).
The report further quoted a source as saying, "Flipkart wants to have the extended comfort that even if they have to go back and forth a few more times, there will still be enough time and that they are the only ones and nobody else can pick up and take it away".
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.
The deal between Snapdeal and Flipkart, if completed, would mark the biggest acquisition in the Indian e-commerce space.
ALSO READ: Snapdeal board rejects Flipkart's $850 million offer
One of the leading contenders in the Indian e-commerce space, Snapdeal has seen its fortunes failing amid strong competition from Amazon and Flipkart.
Compared to a valuation of about USD 6.5 billion in February 2016, the sale to Flipkart could see Snapdeal being valued at about USD 1 billion.
SoftBank has already written off over USD 1 billion on valuation of its investment in Snapdeal.