Flipkart Increases Bid with Snapdeal
The e-commerce industry has grown into a giant today. With an ocean full of small and big retailers in this industry, Flipkart and Snapdeal have been two prominent competitors. Earlier this month, it was reported that Flipkart increases bid and offered a bid of about $800 – $850 Million to the board of directors to Snapdeal, which was rejected.
The reason of rejection was reported to be unsatisfactory offer and terms of payment. Flipkart, is keen on buying out the rival, decided to revise the offer and as per sources, the new bid has increased to $ 900 – $ 950. It has been seen that with this new offer, the board of directors are not considering it and will comment on it after a thorough evaluation.
Other rivals interested in investing in Snapdeal
It has been reported by trusted sources that, another e-commerce player called Infibeam has also shown interest in Snapdeal and has also gone ahead to make an offer to the board. The team of Snapdeal is evaluating both the proposals before taking a final decision.
Founders and investor’s say
Softbank Group of Japan who is also the biggest shareholder of Snapdeal has been very interested in the revised offer received by Flipkart. Their strategy is to fold into Flipkart so that they can battle against Amazon so that they can have a larger share in the retail consumer market of the country.
In contrast, Snapdeal’s founders are also interested in the offer of Infibeam and hence the entire board would like to evaluate on both options.