Snapdeal rejects Flipkart’s $850 million offer

Talks between Flipkart and Snapdeal have hit another hurdle as the Snapdeal board has refused a takeover offer of $800-850 million, or nearly Rs 5,500 crore.

PTI quoted sources as saying Flipkart has completed the due diligence process and has made an offer of USD 800-850 million to buy Snapdeal.

However, Snapdeal's board felt the amount undervalued the company.

"The first offer has been rejected but talks are still on. It is an ongoing discussion," one of the sources told PTI.

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.

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.