Softbank Group and Saudi Arabia's main sovereign wealth fund have committed to invest over USD 93 billion in technology sectors such as artificial intelligence and robotics
The e-commerce company has evolved a new corporate strategy by cutting its marketing budgets by a third but increasing its conversions and reach
The ecommerce players have signed a non-binding term sheet for the merger, sources said.
Some employees are of the opinion that the amount worth about 4-6 times of their monthly salary is being offered is just to make sure that no roadblock happens from their end as due diligence is underway
The development comes at a time when Softbank has concluded $1.4 billion deal in Paytm and is also leading a very crucial merger of one of its portfolio companies Snapdeal, with larger rival Flipkart
Even as Snapdeal is in talks with rival Flipkart for a merger, sellers registered with the Gurgaon based online marketplace claim to have outstanding dues with the company.
The association claimed that over 500 sellers have unsettled dues with Snapdeal, and would lose out if the deal is allowed to go ahead.
CNBC-TV18 learns from sources that based on current talks between investors, Snapdeal's valuation is now pegged between USD 1 to 1.1 billion.
Investors drive decisions on merger with Flipkart, even as Snapdeal has hired Amarchand Mangaldas to lead the negotiations for the deal, expected to be concluded this month.
Sale of a company often leaves employees high and dry, but not in the case of Snapdeal that may offer a Rs 193 crore bonanza to its staff if the homegrown e-commerce firm is taken over by larger rival Flipkart.
The payout is part of the merger of Snapdeal with Flipkart, sources confirmed to Moneycontrol. SoftBank is likely to invest a large sum in the merged entity, giving the existing stakeholders an exit.
In its two-day mega sale on May 11–12, Snapdeal will offer up to 70 percent discount on categories including home, fashion and electronics.
With intense competition from deep-pocketed global rivals like Amazon, companies like Flipkart and Snapdeal could face more heat in the coming days
Nexus and Snapdeal founders have agreed to the terms of payment with SoftBank wherein Snapdeal founders would get $15 million each and Nexus would get $50 million to $60 million, the business channel said on Thursday.
The two ecommerce companies are expected to start due diligence over the feasibility of the merger in next week.
Softbank had previously written down USD 555 million, for its investment in Snapdeal and Ola, in the six months ending September 2016.
SoftBank Group Corp (SBG) registered loss from financial instruments at FVTPL (fair value through profit or loss) of Japanese yen 160,419 million in consolidated financial statements for the fiscal year ended March 2017, SoftBank said in a statement.
After ploughing about USD 2 billion into minority stakes in Indian e-commerce businesses over the past few years, Japan's SoftBank is upping the stakes, looking to play consolidator and take a more active role at a trio of leading start-ups.
Three Snapdeal sellers said that their sales on the platform have dropped three times since the start of the year.
Snapdeal held a board meeting on Tuesday, where founders Kunal Bahl and Rohit Bansal gave their nod to the deal and agreed to the compensation terms.
Today's board meeting will clear the air on final contours of the sale, and seal the fate of the existing employees of Snapdeal
Paytm is India's largest digital-payments provider. Its parent company, One97 Communications, was valued at $4.2 billion in 2015, according to reports. However, recent estimates suggest the latest figure could be between $7 billion to $9 billion if the SoftBank India investment is factored.
The approval of Nexus Venture Partners will be crucial for the proposed transaction to proceed, according to sources close to the development. The seven-member board of Jasper Infotech, which operates Snapdeal, includes representation from investors SoftBank, Kalaari Capital and Nexus Venture Partners (NVP), as well as co-founders Kunal Bahl and Rohit Bansal.
The SoftBank board has given in-principle nod to hold 20 percent stake in Snapdeal-Flipkart merged entity, besides approving a plan to buyout Snapdeal investors ahead of the potential merger, sources said.