Despite being a loss-making eCommerce company, Snapdeal has been making constant news since last few days. The negotiations for a possible acquisition with Flipkart are still on and there are now rumours that Snapdeal is also exploring a merger option with Infibeam. The proposed transaction will make the merged entity valued at ₹13000 crores ($2 Billion).
According to the latest reports, Infibeam has even sent a term sheet to Snapdeal. The proposed merger values Snapdeal at ₹6500 crores ($1 Billion), the figure which was once sought by Snapdeal in the transaction with Flipkart. Snapdeal’s exclusivity offer extended to Flipkart got over earlier this month and since then, Snapdeal has been in talks with various other names to sell its subsidiaries and assets in order to raise cash for funding the operations activities.
Flipkart had recently offered to buy out Snapdeal for ₹5500 crores, however, the offer was rejected by Snapdeal. According to reports, Flipkart is planning to present another offer worth ₹6000 crores to Snapdeal. The new offer might be presented within the coming week.
Infibeam is currently the only Indian eCommerce company listed publicly on the stock exchange. The proposed transaction, if takes place, might put Infibeam in competition with the other eCommerce players. More details on this transactions are still awaited.
We will keep you updated with all the updates around Snapdeal’s merger/acquisition. Stay tuned.