Beleaguered online marketplace Snapdeal has called off talks for its merger with rival Flipkart, India’s largest e-commerce player, saying it wants to pursue an “independent path”.
“Snapdeal has been exploring strategic options over the last several months. The company has now decided to pursue an independent path and is terminating all strategic discussions as a result,” a Snapdeal spokesperson said in a statement.
India’s e-commerce marketplace was kept on the edge of its seat for nearly seven months as discussions took place between the two comcpanies. Flipkart had made a revised bid of nearly USD 950 million to acquire rival Snapdeal which had earlier rejected an offer of about USD 850 million, an Economic Times report said quoting un-named sources.
The deal was believed to be for online marketplace Snapdeal, logistics business Vulcan Express and online order management business Unicommerce eSolutions.
The Flipkart-Snapdeal tie-up was aimed at creating a stronger homegrown competitor to Amazon.com Inc., which has been gaining ground in India following an announcement it would be investing $5 billion in the market. The two e-commerce players are said to have been in negotiations since April.
Among Snapdeal’s investors is Chinese e-commerce behemoth Alibaba Group.
Snapdeal, which began operations in 2010 currently has 158 million users with 300,000 sellers, over 30 million products across 800+ diverse categories from over 125,000 regional, national and international brands and retailers. The 10-year old Flipkart currently has a base of over 100 million users is working towards bringing 500 million customers on its platform in the coming few years.