SoftBank Initiates The Merger Of Snapdeal And Flipkart
Japan's Softbank suggests merger of snapdeal with flipkart
The Tokyo’s SoftBank Group is closer to make a greatly expected merger of the two E- commerce giants- Flipkart and Snapdeal happen very soon. SoftBank had a meeting with the investors of Nexus- Snapdeal partners in order to initiate the merger. SoftBank is currently having the highest shareholding in Snapdeal.
The Japan’s leading SoftBank group is all set to onboard the Norwest Venture Partners to sell Snapdeal at a considerable amount. A board meeting is likely to commence soon in order to discuss this strategic move by both the E- commerce giants.
There are seven board members for Jasper Infotech (which owns Snapdeal). The board of members include several executives from SoftBank, NVP, Kalaari Capital and the Co- founders- Mr Rohit Bansal and Mr Kunal Bahl.
SoftBank has been working hard to get this merger turn into reality since March 2017. The sources also confirm that the investors NVP and Kalaari have proposed a plan of merger by quoting a price of $100 million each by the investor for the Snapdeal sale. If the proposal gets an approval, then SoftBank would likely get a 20% share in the E-commerce company with a valuation of $1.5 billion.
Snapdeal had established 6 years ago when Rohit Bansal and Kunal Bahl had an idea of setting up E- commerce setup and offer Indian consumers with a wide range of products across different categories. Currently, Snapdeal is one of the leading E- commerce companies followed by Amazon its biggest rival.
Snapdeal has a collection of more than 125,000 local and international brands. The delivery channels of Snapdeal are spread across in 6000 towns and cities in India. Recently, SoftBank had a meeting with Kalaari Capital triggering the investors to invest in the much-awaited merger of Flipkart and Snapdeal.
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