Snapdeal Rejects Flipkart Offer, Will Sell Off Some Non-core Assets to Stay Independent

The Indian drama that keeps on giving.

Bloomberg:

Snapdeal rejected an acquisition bid from rival Flipkart Online Services Pvt, saying it will compete alone in India’s e-commerce market.

Snapdeal, which said it will sell off some non-core assets, is set to post a gross profit this month, the startup said in an emailed statement Monday.

SoftBank Group Corp., which has almost a third of Snapdeal shares, and Tiger Global Management, which holds a substantial stake in Flipkart, had been pushing the two competitors to merge so they can create a stronger local company to fend off Amazon.com Inc. SoftBank abandoned the effort after trying to negotiate the deal, said people with knowledge of the matter, who asked not to be identified because the talks were private.

Maybe that is for the better for both companies or, at least, it will be better for Flipkart this way. Several analysts have been wondering how much Flipkart would gain from getting Snapdeal. (quite a few argued: very little.)

As Amazon and Alibaba, via Paytm, go head to head in India, it would be close to a miracle if Snapdeal manages to get sustainable marketshare against those giants and the larger Flipkart.

At least, Flipkart can now set its focus onto the real battle.

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3 comments

  1. […] is the biggest stakeholder in India’s Snapdeal. Softbank also was the major force in, unsuccessfully, pushing Snapdeal to sell to Flipkart. Now that the merger between the two Indian online retailers […]

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  2. […] die Übernahme von Snapdeal gescheitert ist, hat Flipkart gestern eine Mega-Runde […]

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  3. […] far more likely to become just that. Hence, Softbank’s push for a Flipkart-Snapdeal merger and, now that the merger got rejected by Snapdeal‘s founders, the investment in the currently largest online retailer in India. ​​ ​​Softbank still owns […]

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