Snapdeal reportedly in talks with Flipkart, Paytm for potential sale

Online marketplace Snapdeal is reportedly in talks with rivals Flipkart and Paytm E-Commerce Pvt Ltd for a potential sale, according to a Livemint report.

Japan's Softbank Group, an investor in Snapdeal, is leading the sale talks, and the deal could value the online retailer at less than the total equity raised by parent Jasper Infotech Pvt Ltd, the publication reported.

However, a Snapdeal spokesperson has outrightly rubbished the report saying, "Your information is incorrect and without basis. We are making decisive progress in our journey towards profitability, and all our efforts are aligned in this direction."

Citing people in the know of things, the Mint report says that SoftBank is expected to inject up to $50 million as bridge money till a deal is closed and the price being offered for Snapdeal ranges between $1.5 billion and $1.8 billion.

Apparently, the talks are in more advanced stage with Paytm than Flipkart as the former shares close investor link with Snapdeal. Snapdeal that has been shoved to a distant third position in the Indian e-commerce market by rivals Flipkart and Amazon has been going through tough times in the last few months. Despite a rebranding and makeover, Snapdeal reported a loss of $14.93 million in the financial year to March 31, 2016, according to regulatory filings.

Also, last month, it laid off 600 employees, and its founders gave up their salaries in a bid to conserve valuable cash. The deal, if it makes through will prove crucial to deciding who takes the biggest pie in the lucrative and growing Indian online retail space.