What are the best Indian e-commerce website according to?
Flipkart? Amazon? Snapdeal will be the answer of very few.
But it looks like something massive is going to happen in the Indian e-commerce website. According to a report on Times of India, Japanese firm SoftBank pushing Snapdeal to merge with Flipkart. Even if two companies are merged, then SoftBank will invest upto $1.5 Billion (almost ₹9860 Crores) at 15% stake in the merged company.
To remind you, SoftBank is the largest investor of Snapdeal (valued at $6.5 billion in early 2016) with 30% stake . Tiger Global, New York based largest investor of Flipkart (with 30% stake) may sell its 10% (worth almost $1 billion) to SoftBank if this merging takes place.
According to reports, SofBank has planned three options for Snapdeal – merging with Flipkart, combine with Alibaba-led Paytm, or a writedown of SoftBank’s investment to zero.
It is allegedly reported that, Flipkart has agreed for the deal. The discussion has started between SofBank and Flipkart since February. If everything goes well then the deal may be finalized by late April.
Snapdeal which was founded in 2010, is going through a tough time with lack of fund raise and less profit. They already said to cut off 600 employees. Snapdeal has already reported a huge loss of Rs. 29.6 billion in the financial year 2015-16. If this deal takes place then definitely it can be a life saver for Snapdeal.
Stay tuned with us for further development.