Kalaari Capital joins hands with SoftBank, supports Snapdeal’s sale to Flipkart

One of Snapdeal’s investors, Kalaari Capital, has apparently agreed to sale of the e-commerce site to Flipkart.

SoftBank has been coaxing Kalaari and another investor Nexus Venture Partners for Snapdeal’s sale to Flipkart for around $1 billion.

Initially, Kalaari Capital was not convinced but now it has, reportedly, joined hands with SoftBank for the proposed sale.

"After sustained discussions, they (Kalaari Capital) are now on board... There is an understanding that they will work with SoftBank down the line,” ET quotes of the sources as saying.

SoftBank requires assent of two investors to push for sale of Jasper-owned Snapdeal. However, nothing has been confirmed by Snapdeal's founders Kunal Bahl and Rohit Bansal.

If the sale goes through, SoftBank will become a significant shareholder by making a substantial investment, expected to range between $1billion and $1.5 billion.

As reported by ET last week, Soft-Bank is also considering a sizeable investment in Paytm owner One97 Communications in a deal that could value the Noida-based company at over $7 billion. SoftBank, which has so far invested about $2 billion in Indian startups including ride-hailing app Ola, hotel room aggregator Oyo and hyperlocal commerce company Grofers, is aiming to shed some flab in its portfolio.