The board of Snapdeal has turned down a takeover offer from Flipkart, which reportedly bid between $700 million and $850 million for the Indian online marketplace. The companies remain in negotiations as Snapdeal tries to secure a deal that more closely resembles Flipkart’s initial offer of $1 billion—that bid sank after the due diligence process, per The Economic Times.
The deal, which parties involved hope will help Flipkart take on Amazon’s growing presence in India, has been encouraged and mediated by Snapdeal backer SoftBank, which is angling to use the sale to snag a share of Flipkart, per Reuters. Snapdeal was valued at an estimated $6.5 billion last year, but the company has since struggled and will likely see its valuation plummet with the Flipkart combination. Flipkart, meanwhile, is said to have raised $71 million in equity funding late last month and was valued at $11.6 billion in April.
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