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Last Updated : May 22, 2019 06:52 PM IST | Source: Moneycontrol.com

Snapdeal may finalise ShopClues deal soon

The transaction is expected to be a 100 percent purchase of Shopclues

Moneycontrol News @moneycontrolcom

Snapdeal is close to finalising a deal with ShopClues, with a final decision expected soon, according to a report by The Economic Times. The deal will help Snapdeal make a strong comeback and give stiff competition to rivals Walmart-owned Flipkart and Amazon.

ShopClues’ investors are likely to receive one share of Snapdeal for every nine shares, giving them a 10 percent stake in the combined entity, the report stated.

Gurgaon-based ShopClues has asked for a 30 percent stake in the merged company, the report added. The transaction is expected to be a complete stake purchase of ShopClues, the publication reported.

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The management and founders, Radhika Aggarwal and Sanjay Sethi, will likely be given a small cash exit, the article quoted a source as saying.

Moneycontrol couldn’t independently verify the report.

Also read: A look at how ShopClues is trying to turn the corner

In April, Moneycontrol had reported that Snapdeal and ShopClues have begun preliminary discussions.

The due diligence process for the merger has begun, the report said.

Nexus Ventures Capital is a common investor in both Snapdeal and ShopClues. Singapore-based sovereign wealth fund GIC and US hedge fund Tiger Global are among the other investors in ShopClues.

Chinese e-commerce giant Alibaba, Japanese conglomerate SoftBank, Bessemer Venture Partners and Foxconn are among the other investors in Snapdeal.

Snapdeal clocks around 200,000 orders daily, while ShopClues records around 30,000 orders. Amazon and Flipkart, on the other hand, witness daily orders of around 600,000.

Snapdeal had in 2017 attempted a merger with Flipkart, a deal which eventually collapsed.

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First Published on May 22, 2019 10:49 am
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