Flipkart, a home grown India eCommerce company is said to be in talks to acquire Snapdeal, a merchant based eCommerce company operating solely in India.
According to Forbes India, the deal could be finalised in a couple of weeks.
Sanpdeal has been in the doldrums for a while and a sell off might be a better way out for its weary investors. The company’s valuation has tanked from USD6.5 billion to just USD1 billion.
Over the last few months, Snapdeal has laid off over 600 workers and many other top executives have left the company as a result of many other reasons which have not being reported.
SoftBank, one of SnapDeal’s earlier investors might be staying put in the company. The Japanese telecom company is said to be planning to buy off 40% shareholding owned by Tiger Global Management and Nexus Venture Partners to remain in the system.
With a USD465 million loss in its year end March 2016, SnapDeal might be making a wise decision to sell to Flipkart, a bigger company with over 70% of the fashion and clothing market.