It’s official! Flipkart has signed the term-sheet to buy Snapdeal
May 24, 2017, 13:28 IST
After several rounds of speculations, India’s largest e-commerce company Flipkart has finally signed a binding term-sheet to acquire its rival e-commerce company Snapdeal.
Also read: Flipkart and Amazon are in race to deal with Government for its e-marketplace
Flipkart will be thinking over the commercial and financial aspects in the coming days, after which it will rigorously examine Snapdeal’s books before quoting the final price.
As per the term-sheet, which was signed over the weekend, Gurgaon-based Snapdeal is valued at about $1 billion.
Also read: Lessons learnt from Snapdeal episode; Ola founders get more power, greater control
Nexus Venture Partners, Snapdeal’s early investor holding veto rights under its shareholders agreement, agreed to the sale a few days back.
If all the stakeholders in Snapdeal say yes, Nexus, with an investment of $43 to $45 million for about a 10% stake, could receive about $60 million.
Additionally, Kalaari Capital, which holds 8% share in Snapdeal, could get up to $30 million after the deal. Not only this, the founders of the company, Kunal Bahl and Rohit Bansal, will also get an estimated $30 million subject to approvals from the majority, if not all of, Snapdeal's shareholders.
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Also read: Flipkart and Amazon are in race to deal with Government for its e-marketplace
Flipkart will be thinking over the commercial and financial aspects in the coming days, after which it will rigorously examine Snapdeal’s books before quoting the final price.
As per the term-sheet, which was signed over the weekend, Gurgaon-based Snapdeal is valued at about $1 billion.
Also read: Lessons learnt from Snapdeal episode; Ola founders get more power, greater control
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Nexus Venture Partners, Snapdeal’s early investor holding veto rights under its shareholders agreement, agreed to the sale a few days back.
If all the stakeholders in Snapdeal say yes, Nexus, with an investment of $43 to $45 million for about a 10% stake, could receive about $60 million.
Additionally, Kalaari Capital, which holds 8% share in Snapdeal, could get up to $30 million after the deal. Not only this, the founders of the company, Kunal Bahl and Rohit Bansal, will also get an estimated $30 million subject to approvals from the majority, if not all of, Snapdeal's shareholders.