The deal is likely to consolidate India’s two major e-commerce platforms to battle foreign entrant Amazon which has already invested USD 2 billion in the country
Snapdeal co-founders Kunal Bahl and Rohit Bansal have just returned from a short trip to Tokyo which headquarters its top investor SoftBank, sparking off talk that the potential sale of the company is around the corner.
According to people privy to the development, the co-founders have agreed upon the final contours to sell Snapdeal to its arch rival Flipkart.
Bahl and Bansal in 2010 started the company as a 'deals site' which later pivoted to an online marketplace.
The deal is likely to consolidate India’s two major e-commerce platforms to battle foreign entrant Amazon which has already invested USD 2 billion in the country.
Meanwhile, Snapdeal which had its main offices in two Gurgaon-based buildings -- ASF Tower and ASF Centre has vacated one of them. The buildings had a pending lease period of 18 months. As part of a settlement, it is making an upfront payment of around Rs 40 crore for the space vacated.
Apart from SoftBank, which owns 30 percent of Snapdeal's stake, other investors in the e-tailer include names like Kalaari Capital and Nexus venture, which own 8 and 11 percent, respectively.
The company has so far raised close to USD 1.76 billion from investors such as Ontario Teachers’ Pension Fund, Softbank, Alibaba Group, Temasek and others. But according to sources, the company is left with less than USD 100 million in its bank account.Snapdeal’s board has been in talks with Flipkart for a potential stake sale and the deal is being led by SoftBank and Tiger Global Management. Post a successful merger, SoftBank is likely to invest a large sum into the merged entity.