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Snapdeal to be sold to Flipkart

Snapdeal to be sold to Flipkart
Picture Courtesy: BI

Bangalore: Nexus Venture Partners (NVP) has reportedly said a yes in regards of selling of Snapdeal to Flipkart. Japan’s SoftBank also a got an approval from Kalaari capital last month.

The term sheet with Flipkart could be signed soon, following which the deal would commence immediately thereafter, as per a report by Business Insider.

Snapdeal founders would get about $25 million each, while NVP could get close to $100 million and stake in the merged/new entity. Kalaari could get about $70-80 million, as per the reports.

SoftBank yesterday said it suffered a loss of $1 billion on its investment in Snapdeal during 2016-17. SoftBank currently owns over 30% in Snapdeal, while Nexus has roughly a 10% stake and Kalaari holds 8% share in the firm.

If this deal between two companies is established, it will be the biggest acquisition in the e-commerce world when the competition is rising every minute.

The competition may even become more intense in the coming days with the companies like Amazon in the e-commerce market. There are reports that Snapdeal’s mobile wallet service Freecharge could be sold separately with players like Paytm and MobiKwik being in the thread.