How Flipkart clinched Jabong from Snapdeal in just 3 days

Snapdeal, as reported in recent weeks, had entered into exclusive talks after its co-founder Kunal Bahl launched aggressive negotiations to win the favour of Lorenzo Grabau, the boss of Swedish investment firm Kinnevik, the largest shareholder in Jabong. This happened even as Flipkart, through Myntra, expressed interest in the deal in the initial stages.

Also read: Flipkart CEO Binny Bansal writes letter to employees on Jabong acquisition

Snapdeal was expected to close the deal on July 21 even as the exclusivity expired last weekend. "They (Snapdeal) started raising questions on the structuring of the proposed deal besides expressing reservations on FDI regulations, which they knew all along," said a source directly involved with the matter.

Also read: No mergers in near future, says Flipkart’s Bansal

Grabau, who wanted a closure to deal-making, decided to look elsewhere. The sellers didn't want to be held hostage, though the mood was getting grim.

Flipkart moved with speed offering to close an all-cash deal in three days. And that's what they did. "I would probably say Flipkart didn't win it, but Snapdeal just lost the case. They probably didn't anticipate a rival bid would move so swiftly," the source added. Contrary to media speculation, Snapdeal's offer was also an all cash deal.