Snapdeal inches closer to Flipkart in GMV value

A leading Indian marketplace, Snapdeal is inching closer to its closest rival and leader of ecommerce space, Flipkart. The former was able to report a GMV of 3.5 billion dollars (over Rs 22,200 crores) this month. Sales achieved by traders on the Snapdeal platform said to have increased four times in the current month against the same period last year.

The Delhi-based e-commerce major is set to announce an initial public offering (IPO) in the US at a valuation of 5-6 billion dollars (over Rs 31,000 to Rs 37,000 crores). Sources claim that the company had appointed merchant bankers for the probable listing on the American stock exchange. The IPO is expected to roll out in 2016-17, will let Snapdeal raise capital, allowing some of its investors to exit.

Funding talks between leading marketplace Snapdeal and Chinese giant Alibaba could not reach a logical conclusion over high valuation sought by Snapdeal. Amid stiff competition to be ahead in the ecommerce market and also under pressure to turn profitable, Snapdeal was eyeing to scoop a record funding boost of Rs 6,200 crores from Alibaba. Even earlier, the both had held talks but the deal could not get finalized over the same issue. Snapdeal posted a loss of Rs 264.6 crores on revenue of Rs168.1 crores in 2013-2014 as per filings to the Registrar of Companies.