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Flipkart proposes revised takeover offer for Snapdeal

RBR Staff Writer Published 19 July 2017

Indian e-commerce company Flipkart has reportedly sent a revised proposal to acquire rival Snapdeal for a price ranging in the $900-950m bracket.

Earlier in the month, the New Delhi-based Snapdeal had rejected Flipkart’s takeover offer which was estimated to be $800-900m.

Should the merger between the rivals move forward, then it would go on to become the biggest acquisition in the Indian e-commerce segment.

The Bengaluru-based Flipkart in its revised proposal has offered to buy Snapdeal’s online marketplace along with its e-commerce management software Unicommerce, reported The Hindu citing sources familiar to the development.

Unicommerce, an online multi channel e-commerce order fulfillment platform was acquired by Snapdeal in March 2015 for an undisclosed price. Launched in 2012, Unicommerce has provided technology solutions to online marketplaces like Jabong and Myntra along with Snapdeal and other online sellers.

The Indian media has reported another company Infibeam, an e-commerce group based in Ahmedabad to be in the race to acquire the 2010-founded Snapdeal from its parent Jasper Infotech. However, Infibeam had dismissed the reports to be just speculative.

Flipkart’s revised offer excludes Snapdeal’s logistics business Vulcan Express and the 2015-acquired payments business Freecharge which was the case with its original offer. Snapdeal has been reportedly negotiating separate deals for the two businesses and is likely to reach an agreement in the next few weeks.

While Japan’s SoftBank, the largest investor in Snapdeal has been actively pushing for the sale of the online shopping site, smaller investors like PremjiInvest, the investment arm of Wipro chairman Azim Premji aren’t too happy with the divestiture plans as per the several media reports.

Image: Flipkart headquarters in Bengaluru, India. Photo: courtesy of Jyoti Atma/Wikipedia.org.