Flipkart emerged as the biggest shopper on the day when Amazon started The Great Indian Sale. Snapdeal is set to be acquired by Flipkart as investors and founders of Snapdeal finally reached an agreement after months of uncertainty surrounding the deal.
Founders of Snapdeal and its investors, Nexus, SoftBank group and Kalaari Capital reached an agreement on the sale to Flipkart. As per media sources, Snapdeal has signed a non-binding letter of intent(LoI) with Flipkart for the merger. The LoI is normally signed for sketching the boundaries of the deal and is followed by due diligence and other procedures.
As per preliminary details, Snapdeal founders will get $15mn each and Nexus would get $50mn -$60mn from the deal. Snapdeal had been going through rough business times over last couple of years and this sale was fairly predictable. Snapdeal was valued at $6Bn in the last round of funding in February last year but was struggling to find investors at even $1Bn in this deal.
Sources suggest that Flipkart will start due diligence from next week and its executives will start visiting Snapdeal’s offices and warehouses.