From past few weeks, market has been buzzing with the news about Flipkart acquiring Snapdeal. Well as a fresh turn of events, Snapdeal has allegedly asked asked for a payout of at least USD 900 million in stock for the proposed acquisition by Flipkart.

Flipkart had earlier put across an acquisition offer of about USD 700 million-USD 800 million which Snapdeal Board had rejected. Reports suggest that Bengaluru-based Flipkart has not yet responded to the offer. However, a new offer price for the acquisition is expected to be conveyed to Snapdeal in next two weeks.

Flipkart had made an acquisition offer of about USD 700-USD 750 million last week which was ‘significantly lower’ than the initial USD 1 billion bid. This move had come in post the eight weeks of due diligence.

Flipkart and Snapdeal had signed a Letter of Intent (LoI) for the merger in May 2017. As per reports, SoftBank also bought out the stakes of Kalaari Capital and both the founders, raking in a total of 47.5% shareholding in the company. A few weeks back, Snapdeal founders and Nexus Venture Partners infused $17.5 Mn into the company in an emergency funding round.

SoftBank holds about 33% stock in Snapdeal. Currently, the ecommerce marketplace Board includes SoftBank (holds two seats), Nexus Ventures, Rohit Bansal, Kunal Bahl, and Akhil Gupta (Vice Chairman, Bharti Enterprises). Kalaari Capital representative on the ecommerce firm’s Board, Vani Kola, resigned from the board of Jasper Infotech (the parent company of Snapdeal).

As per reports following the sale of Snapdeal, Softbank – the orchestrator of the deal – will make an equity infusion in Flipkart. SoftBank is reportedly looking to buy a part of Tiger Global’s stake in Flipkart.

Talks of the Flipkart-Snapdeal acquisition have been rife for months now. The final outcome of these speculations is still awaited.

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Shivani Pandita

Shivani is an avid reader and loves to pen down her thoughts on paper in the most creative ways. She is more on the eccentric side, but it is this obscurity and uniqueness that makes her stand out. She has a passion for photography, travel and music. She strikes a thorough balance between intelligence and creativity and has a solution oriented approach to any problem at hand.

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