The impending merger between the two large Indian e-commerce players – Flipkart and Snapdeal appears to be heading towards closure with both of them signing a non-binding term sheet. The term sheet is likely to see Snapdeal being valued in the range of $950 million USD and $1 billion USD for its merger with Flipkart, according to media reports.
The merger is likely to be the largest ever such deal in the decade-old Indian e-commerce industry and Flipkart may soon begin the formal due diligence process.
The merger has the backing from Snapdeal’s largest investor, Softbank, the Japan-headquartered internet and telecom venture fund which has investments in various Indian startups.
The merger is expected to be a cashless transaction. It is also likely to see the exit of Snapdeal founders Kunal Bahl and Rohit Bansal. The merged entity will emerge as a stronger competitor to global online retailer, Amazon.
Full Content: Business Standard
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