Flipkart expected to offer $900-950 million for Snapdeal acquisition deal

E-commerce major, Flipkart is expected to make a revised offer of $900-950 million for buying rival Snapdeal, according to sources.

The new offer almost matches the initial asking price of $1 billion for acquisition of the beleaguered e-commerce marketplace, sources close to the development said.

According to one of the sources, a new offer of $900-950 million is likely to be made by early next week.

Snapdeal's board has already rejected a takeover offer of $800-850 million (around Rs 5,500 crore) from Flipkart as it felt the amount undervalued the company given that the due diligence report was clean.

SoftBank, Snapdeal's largest investor, has been proactively mediating the sale for the past few months. The board of Snapdeal also has representation from its founders (Kunal Bahl and Rohit Bansal), Nexus Venture Partners and Kalaari Capital.

Snapdeal is also engaged in separate discussions for selling Freecharge (mobile wallet operations) and Vulcan Express (logistics arm).

These deals are also likely to be closed over the next few weeks.

The deal between Snapdeal and Flipkart, if completed, would mark the biggest acquisition in the Indian e-commerce space.