After Snapdeal’s board reportedly rejected Flipkart’s $850 million takeover offer, the two parties are now holding parleys over the $150-200 million valuation gap.
According to sources privy to the development, Flipkart had initially offered $1 billion for the deal but post the due diligence, it made an offer for $800-850 million.
The offer was rejected by Snapdeal’s board as it felt the amount undervalues the company as the due diligence report is clean, one of the sources said.
“However, the deal isn’t off and negotiations will continue. The differences over Snapdeal’s valuation could delay the process,” they added.
Emails sent to Snapdeal, SoftBank and Flipkart did not elicit response.
SoftBank, 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.