According to a latest development, the Flipkart-Snapdeal merger might soon be coming to an end. Weeks ago Snapdeal rejected Flipkart’s $850 million buyout offer as Snapdeal’s board felt that the offer made by the ecommerce leader undervalued the company. However, Flipkart wasn’t yet ready to take no for an answer and was contemplating giving its rival company a new improved offer.
A latest Zeebiz report has claimed that the Flipkart board has already approved the revised offer for Snapdeal. It is being said that the new offer is likely be around $1 billion.
The report comes fresh on the lines of a news report claiming that SoftBank is considering investing $500 million in Flipkart. According to rumours going around, SoftBank is planning a $2 billion investment in Flipkart, as part of a primary funding.
According to a Factordaily report, the fresh funding is supposed to be a part of the Snapdeal-Flipkart deal, where some of the existing Snapdeal investors are looking for an out.
The report also divulged that the $1.5 billion amount, which is the remaining amount will be used by SoftBank to pay back back Tiger (Global), Snapdeal’s investor. Tiger Global is also Flipkart’s largest shareholder.
The report further highlighted, Kalaari Capital and Nexus Ventures Partners, which are two of the larger Snapdeal investors who also hold board positions, will get an exit. The merger, which was being deemed as India’s biggest consolidation in the e-commerce sector, is taking a long time to materialise as initially Snapdeal’s early-stage investor Nexus Venture Partners (NVP) was not happy with the payout being offered by the Tokyo-headquartered telecom and internet giant SoftBank. Snapdeal’s founders, Kunal Bahl and Rohit Bansal, along with a couple of other small and mid-sized investors, will exit Snapdeal as well. The report claims that even Tiger Global is looking for a partial exit from Flipkart.
Snapdeal is currently also in the midst of having separate discussions for selling its mobile wallet operations app, Freecharge and logistics arm, Vulcan Express.
Like this content? Sign up for our daily newsletter to get latest updates.