India's Snapdeal founders, Nexus reach deal with SoftBank for sale to Flipkart

Inc Stock Will This $5 Billion Bet Pay Off

Earlier news agency PTI had reported that Softbank, Japenese investor in Snapdeal, was close to getting approval from its partner investor Nexus Venture Partners for Snapdeal's sale to Flipkart.

The deal between Snapdeal and Flipkart, if completed, would mark the biggest acquisition in the Indian e-commerce space and change the landscape of the sector that is witnessing intense competition among players.

The players were in huddled talks over the past few weeks to break the logjam.

When contacted, a Soft-Bank spokesperson declined to comment, while an email sent to a Snapdeal spokesperson did not elicit a response till the time of going to press.

Kalaari may get $70-80 million.

Last month, Flipkart offered $1 billion in stock to buy Snapdeal (excluding FreeCharge).

SoftBank said it suffered a loss of Dollars 1 billion (Rs 6,500 crore) on its investment in Snapdeal, nearly matching the money it has put in the home-grown marketplace during 2016-17.

Snapdeal was valued at $6.5 billion in its last funding round in February 2016.

ANI Technologies, which runs Ola, reported revenues of Rs 758.23 crore in 2015-16 and a loss of around Rs 2,313.7 crore.

Dozens gather as Jeff Davis Memorial comes down in New Orleans
Davis was president of the Confederate States of America, a group of states that seceded from the USA and led to the Civil War. Rumors have surfaced several times over the past week and a half that the Davis monument was about to be taken down.

The company has been desperately seeking to raise more funds without any success.

With Snapdeal's dismal showing in the last few quarters, SoftBank's investment of almost $900 million is running thin.

CHENNAI: japanese investment firm SoftBank Group Corp has written down the value of its investments by $1.4 billion, more than Rs 9,000 crore, primarily due to the falling value of its holdings in Indian e-commerce firms Snapdeal and Ola.

Jasper InfoTech, the parent company of Snapdeal, has been pumping in money into FreeCharge, having put in about '420 crore according to documents filed with the registrar of companies.

Referring to the poor performance by the e-commerce major Snapdeal, SoftBank said the company's performance was weaker than expected.

According to a report in the ET, Paytm will begin financial and commercial due diligence of FreeCharge next week.

Snapdeal in recent months has had to trim its workforce significantly and shut down non-core businesses.

Softbank-backed e-commerce firm Snapdeal has finally agreed to sign a non-binding letter of intent for a merger with Flipkart. Snapdeal founders Bahl and Bansal have been offered $15 million each, with an additional $30 million for the entire management team and employees at Snapdeal.

The company is also aiming for a pie in the online grocery market.

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