New Delhi : Differences over valuation are turning into a hurdle in advertising technology company Komli Media’s quest for buyers.
E-commerce company Snapdeal was in talks for acquiring Komli Media, but the deal soured. Online payments company Paytm has also refused to buy the firm. Sources in Paytm said Komli Media had offered itself as an acquisition target but for a high price.
Komli Media was seeking a valuation of $250-300 million from Snapdeal. Buyers are looking at a value that is a fourth or a fifth of what is being sought by Komli Media.
When contacted, a spokesperson for Komli Media said in an email response, “We do not comment on rumours or speculation.”
“The company is on the block for quite some time now. Komli Media has given indications of negotiating the valuation, but potential buyers are not ready for a deal. Paytm is the latest to have called it off,” a source with knowledge of the matter said.
Founded in 2006, Komli Media has raised $97 million in five rounds from investors, including Nexus Venture Partners and Peepul Capital. It employs 300 people across India. It claims to be the leading advertising network in the Asia-Pacific region.
As Indian e-commerce clocks jaw-dropping growth rates, online retailers are keen to sell advertising space on their portals. Flipkart, the poster boy of Indian e-commerce, has acquired advertisment technology company Adiquity. Advertisements are a new revenue stream for e-commerce companies, as discounts and spending on infrastructure mount.