The trending news prevailing in the e-commerce genre right now is the decline of the bid of $700 million-$800 million (roughly Rs. 4,532 crores -Rs.5,178 crores) from Flipkart, by the board of the Indian online marketplace Snapdeal. This decline by Snapdeal was done after the due constancy from its biggest rival.
The initial plan:
The initial plan was pitched by Snapdeal’s biggest investor i.e. Japan’s SoftBank Group where the main motive behind this sell-off was to ensure a firm grip as a major stakeholder in India’s largest e-commerce player.
Bengaluru-based unit Flipkart made this offer last week exclusively for the Snapdeal online marketplace and the company’s logistics arm Vulcan Express or the digital payments unit FreeCharge was kept completely out of the offer.
Neither SoftBank nor Snapdeal or even its shareholders such as the Nexus Venture Partners and Kalaari Capital, and Flipkart were not available to comment on the authenticity of the news.
Expectations are on the afloat that Snapdeal should at least fetch $1 billion from its sale to Flipkart.
The current scenario sees the continuation of negotiations between the two companies, as per a trusted source.Also, Flipkart did not provide any strong reason to substantiate the query behind the ‘knocking down’ of Snapdeal’s valuation.
Last but not the least, the source also added that SoftBank would invest $1 billion in Flipkart through the process of direct cash infusion and by purchasing equity stakes in its investors, such as the Tiger Global.