The rumors of Flipkart acquiring Snapdeal is now officially dead. For past few months, this speculations was covered by masses and it was reported that the $900-$950 mn acquisition was waiting for the approval from shareholders of Snapdeal. However, the deal has come to end.
It was reported that Jasper Infotech, Snapdeal’s board, had agreed to the Flipkart’s bid of $900-$950 mn and was awaiting for the approval from other shareholders. However, Snapdeal’s founders Rohit Bansal and Kunal Bahl decided to continue operating Snapdeal as an independent company.
A spokesperson from Snapdeal mentioned that the company has been considering strategic alternatives for the dominance in the market. However, the board has decided to terminate all the strategic options and pursue an independent path. Now the company will rival Flipkart, whereas, Flipkart itself is competing with Amazon.
Snapdeal’s Backers lost Valuable Equity in Flipkart
Tiger Global and SoftBank, the prominent backers of Snapdeal, were reported to be in the favor of the Snapdeal’s acquisition by Flipkart, as it would have given them equity in Flipkart. It would have been a profitable deal for them, as Flipkart emerged as one of the major competitors of Amazon. Furthermore, Flipkart has recently made some significant C-level changes including appointing Kalyan Krishnamurthy as the new CEO. Flipkart also raised $1.4 bn in funding from Tencent, Microsoft, and eBay and attained a valuation of about $11.6 bn.
Creating a life-changing experience was always the Snapdeal’s vision, mentioned the spokesperson. They always focused on creating rich shopping experience for millions of users in India. They are now focusing on Snapdeal 2.0, which is expected to take them a step closer to their vision.