Snapdeal-Flipkart deal likely to fall apart after Freecharge's sale
The Flipkart-buyout offer has however received a major push from Snapdeal investors due to competition from Amazon.
Mumbai: The USD 900-950 million Snapdeal-Flipkart merger which has been making headlines lately, may fall apart, after an important meeting between the two parties was cancelled.
Flipkart's buyout offer, which had already received the board's nod, was due for approval from shareholders.
According to a report in Moneycontrol, the cancellation of the crucial meeting comes just days after Snapdeal announced the sale of Freecharge to Axis Bank for Rs 385 crore.
Recently, Snapdeal founder and CEO Kunal Bahl told the employees that the acquisition of Freecharge gave Snapdeal much needed cash. He had said that it was now time for the company to focus on itself.
Reports suggest that that Bahl and co-founder Rohit Bansal have been rallying efforts to convince the Snapdeal Board to go for an alternate plan, instead of selling the company to Flipkart.
The Flipkart-buyout offer has however received a major push from Snapdeal investors, according to Moneycontrol. This is due to the pressure from increasing competition from Amazon and domestic rival Flipkart.