1. Home
  3. Blog
  5. Softbank-prompts-flipkart-to-buy-snapdeal

SoftBank Prompts Flipkart To Buy Snapdeal

Sushant Deshpande

    Snapdeal & Flipkart

Snapdeal is all set to be sold to the E- commerce giant Snapdeal. SoftBank which is Japan’s leading bank is predicting a likely merger between Flipkart and Snapdeal. If this deal is approved, then the E-commerce industry of India will grow significantly offering bigger operations in the online marketplace.

SoftBank is intermediate between Snapdeal and Flipkart and it would be investing a huge capital of $1.5 billion in order to get this merger agreed. SoftBank would be aiming to gain a market share of 15% in the Flipkart- Snapdeal merger deal. Currently, SoftBank owns 30% share in Snapdeal and the current valuation of Snapdeal is valued at $6.5 billion.

In addition, Tiger Global will be expected to sell 10% of its total stake of 30% in Flipkart sooner. If the merger is successfully carried out, then Tiger Global may increase its share to 20% in Flipkart. Flipkart’s current capital valuation is $11 billion and if the current funding round happens, then the capital may raise upto $2.5 billion.

Tiger Global holds a major share of stakes in leading E-commerce companies such as Quikr, ShopClues and Ola is now keen on investing big money on Flipkart. Tiger Global invested a massive $800 million worth of funds in Snapdeal.

Tiger’s investment in Snapdeal and Flipkart has given the investor a wide and new online market to expand its brand name. Hence, after a certain period, Tiger Global would be one of the leading investment companies across the globe.

In the year 2015, Flipkart’s valuation was calculated at $15.2 billion. The company is set to raise three different capital funds, with Microsoft pumping in $200 million and $700 million by the Chinese company Tencent.

With the arrival of SoftBank in Indian E-commerce business, it would give Flipkart a strong platform to grow as a company and achieve greater profits. The discussions about the merger have been in talks since February with the founder’s son directly involving in the discussion.



Your email address will not be published. Required fields are marked * Sign in

Please Sign in first to post comments