New Delhi, July 27: After weeks of negotiations, Snapdeal has reportedly accepted Flipkart's revised acquisition offer of $950mn. With this, the Indian e-commerce industry will have only two major players - homegrown Flipkart and US-based Amazon.
As per reports, the board of Jasper Infotech, that runs Snapdeal, has approved the deal and it is awaiting a nod from Snapdeal's shareholders. The company has around 25-28 stakeholders, which includes investors such as Premji Invest, Foxonn, Tencent, Blackrock and Ontario Teacher's Pension Fund.
The company has let go of nearly 9,000 workers and have been forced to shut down portals such as exclusively and Shopo.
Earlier, Snapdeal had rejected the $850 mn takeover offer of Flipkart. The offer was rejected since it fell short of $1 bn valuation that its biggest investor SoftBank Group Corp had sought through the merger.
In May too, Flipkart had reported slightly higher gross sales than Amazon on the back of its Big 10 sale (which makes a reference to Flipkart turning 10), the first three people said, requesting anonymity. Including its fashion units Myntra and Jabong, Flipkart was far ahead of Amazon in the last quarter.
Both Flipkart and Amazon have been reporting strong sales growth, the online retail market in India continues to struggle. A 2016 report from accounting firm EY noted that e-commerce has grown at a compound annual growth rate of over 50 percent in the last five years in India and the pace of growth is expected to continue, with e-commerce sales topping $35 billion by 2020.