In the latest installment of the Flipkart-Snapdeal saga, the board of Snapdeal’s parent company has reportedly accepted a takeover offer from its rival that could total up to $950 million. The pair of ecommerce companies have been fighting against the growing presence of Amazon in India, and the potential merger represents the latest move in their battle with the online retail behemoth.
Until now, Snapdeal has resisted the overtures of its domestic competitor. After Flipkart's initial offer of about $1 billion back in May ran into roadblocks, Snapdeal rejected a second bid in the range of $700 million to $850 million. And reports emerged earlier this week that Snapdeal’s founders may prefer to merge their company with Indian ecommerce conglomerate Infibeam instead. However, that might not have sat well with Snapdeal investor SoftBank, which has been looking to pick up a share of Flipkart through the acquisition of Snapdeal.
Snapdeal was valued at an estimated $6.5 billion in August 2016, while Flipkart reached an estimated $11.6 billion valuation with a $1.4 billion equity round earlier this year. For more information on the ecommerce rivals, check out the free profiles for Flipkart and Snapdeal.