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In the latest development, <keyword id="541988" type="COMPANY" weightage="100" keywordseo="SnapDeal">Snapdeal</keyword> may merge with <keyword id="761157" type="ORGANIZATION" weightage="100" keywordseo="Infibeam">Infibeam</keyword>, which is India’s only publicly listed e-commerce company. As per various reports, Infibeam is in talks with Snapdeal for possible merger talks and has even put a term sheet that may value Snapdeal at $1 billion. If this deal goes through, Infibeam and Snapdeal together will create a company valued at $2 billion. Ahmedabad-based Infibeam has a market capitalisation of Rs 6,100 crore. The development comes after Snapdeal rejected a $700-750 million offer for sale to <keyword id="6354742" type="COMPANY" weightage="100" keywordseo="Flipkart">Flipkart</keyword>. However, PTI reports Flipkart may make a new offer of $900-950 million. "While Infibeam has a focus on business-to-business commerce, Snapdeal's is a consumer-led online retail platform which is why this merger may bring in synergies in their operations. While Infibeam has given a term sheet, it's not the end of the road for Flipkart," ET quoted sources as saying.

After Snapdeal rejects Flipkart’s offer, it may merge with Infibeam and form a $2 billion company

<keyword id="6357120" type="UNKNOWN" weightage="100" keywordseo="PayTM">Paytm</keyword>’s owner <keyword id="181441" type="COMPANY" weightage="20" keywordseo="One97-Communications">One97 Communications</keyword> is going to raise more than $1.9 billion, or Rs 12,000 crore from <keyword id="163404" type="COMPANY" weightage="100" keywordseo="Softbank">SoftBank</keyword>. This deal is seen as the single-largest round of funding for an Indian e-commerce company. After the deal, valuation of One97 Communications will touch $9 billion and provide a 20% stake to SoftBank. "The deal was agreed on earlier this week and is now waiting for board approval,” one of the persons familiar with the transaction told ET. In the last round, Paytm had raised funding from <keyword id="6369515" type="COMPANY" weightage="20" keywordseo="Mediatek">MediaTek</keyword>, which happened nearly eight months back. That time, its valuation was at $4.8 billion. SoftBank has raked in around $2 billion in various Indian companies such as <keyword id="541988" type="COMPANY" weightage="20" keywordseo="SnapDeal">Snapdeal</keyword>, Ola, OYO, and Grofers. Meanwhile, Paytm is building its coffers to compete with WhatsApp and <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword>'s Phonep.

Paytm’s owner to raise over Rs 12,000 crore from SoftBank; single largest funding round so far in the industry

<a href="http://www.businessinsider.in/searchresult.cms?query=softbank&amp;sortorder=effectivedate">SoftBank</a> is going to lead the $250 million funding round of <a href="http://www.businessinsider.in/searchresult.cms?query=oyo+rooms&amp;sortorder=effectivedate">Oyo Rooms</a>, which will take the online hotel booking platform’s valuation to $850 million. ET reported the size of <keyword id="2550719" type="UNKNOWN" weightage="20" keywordseo="OYO-Rooms">Oyo Rooms</keyword>’ latest <a href="http://www.businessinsider.in/searchresult.cms?query=funding&amp;sortorder=effectivedate">funding</a> round is half of the $500 million proposed by <keyword id="163404" type="COMPANY" weightage="20" keywordseo="Softbank">SoftBank</keyword>. After the fresh round of funding, SoftBank will have 42% ownership. "Seeing what has played out at <keyword id="541988" type="COMPANY" weightage="20" keywordseo="SnapDeal">Snapdeal</keyword>, many early investors are wary of SoftBank taking large ownerships in their portfolio companies. But Oyo hasn't been able to shore up capital from external investors, which is why they have opted for half of what was committed by SoftBank," a person privy to the transaction told ET on the condition of anonymity. The investment in Oyo will come through the newly launched $100-billion SoftBank Vision Fund, which is eyeing opportunities in technology ventures globally. A SoftBank spokesperson told ET, "We do not comment on portfolio companies and especially around fund-raising efforts. We are very happy with Oyo's progress in general and commend the team." Oyo may still be trying to get an external investor to come into this round, a source told ET. The hotel aggregation segment in India has gone through consolidation post a slug of capital coming into companies like Oyo and the Tiger Global-backed Zo Rooms, which shut down last year.

Oyo Rooms’ valuation to touch $850 million, this will be the size of its funding

<keyword id="6481662" type="COMPANY" weightage="100" keywordseo="Jasper-Infotech">Jasper Infotech</keyword>, the owner of <keyword id="1705292" type="UNKNOWN" weightage="100" keywordseo="Indian-e-commerce">Indian e-commerce</keyword> giant <keyword id="541988" type="COMPANY" weightage="100" keywordseo="SnapDeal">SnapDeal</keyword>, is closer to cutting a deal with Japan's <a href="http://www.businessinsider.in/softbank-may-pick-up-minority-stake-in-vodafone-india-heres-the-latest-development/articleshow/57306703.cms">SoftBank Corp</a>, its largest shareholder. The deal would be a lifeline to the <a href="http://www.businessinsider.in/snapdeal-has-started-down-sizing-600-employees-have-already-been-fired/articleshow/57343065.cms">struggling</a> Jasper, but could drag its valuation to under $3 billion, down by half. 
 <keyword id="163404" type="COMPANY" weightage="100" keywordseo="Softbank">SoftBank</keyword> is looking forward to an investment of $100-150 million in Jasper, which would be done in parts, three people in the know told ET, while as per another source, the overall investment could be as high as $300 million. 
 
Also read: <a href="http://www.businessinsider.in/nirmalasitharaman-to-investigate-snapdeals-payment-defaults/articleshow/57429327.cms">Nirmala Sitharaman to investigate Snapdeal’s payment defaults</a> 
 
If the transaction takes place, SnapDeal would become the latest top-tier Indian Internet company to cut down its valuation, after cab aggregator Ola and <a href="http://www.businessinsider.in/HSBC-halves-Zomatos-1-billion-valuation/articleshow/52185955.cms">Zomato</a>. 
 
In its last funding round led by Canada's Ontario Teachers' Pension Plan in February 2016, Jasper was valued at $6.5 billion. However, in late 2014 to early 2015, it was valued below $3 billion because of stake sales by shareholders to other investors. 
 
However, industry analysts are of the view that a company raising capital at lower valuations does not necessarily indicate bad times. 
 
"Regardless of valuation, the fact that money is available is a good sign," said Harish HV, partner, India Leadership team, <a href="http://www.businessinsider.in/25-companies-where-interviewing-is-a-treat-not-a-chore/2-grant-thornton/slideshow/55254138.cms">Grant Thornton India</a>. "It means investors, whether new or existing, haven't yet given up on the company and that there is meat left. It's a sign of bullishness." 
 
As per reports, this fresh funding would come with stricter rules regarding financial control. 
 
"Earlier cheques were written after SnapDeal submitted annual operating plans. Now Soft-Bank will ask for SnapDeal's monthly budgets, approve them, and then remit the funds," said one of the aforementioned sources. 
 
In the recent past, SnapDeal, India’s third largest online marketplace after Flipkart and Amazon India, has seen little growth and has been marred by losses, and tremors in upper management. 
 
Also read: <a href="http://www.businessinsider.in/snapdeal-founders-admit-to-wrong-moves-take-100-salary-cut/articleshow/57308448.cms">Snapdeal founders admit to 'wrong moves', take 100% salary cut</a> 
 
(Image source: SatyaVijayi)

SoftBank’s latest investment in Jasper Infotech might bring its valuation down to half

The Indian market is very attractive for foreign investors but one thing to watch out for is how the mood of the <keyword id="6357097" type="COMPANY" weightage="100" keywordseo="venture-capital">venture capital</keyword> industry in the US turns out. If the much talked about tech bubble doesn’t happen, India is not going to slow down anytime soon, says Bharat Ramnani, Associate Vice President of <keyword id="3115720" type="ORGANIZATION" weightage="100" keywordseo="valuation-services">valuation services</keyword> at Aranca.

	 

	He clearly means to say that even though the tech bubble may be real, it is less likely to adversely impact the Indian market. It may slow down the growth considerably and raising capital which has become extremely easy for start-ups than ever may not continue to be so. Even then, we need not worry as most Indian startups (that focus largely on local innovations) are in a very early stage and the bigger ones are backed by investors with deep pockets who can steer through high risk situations.<o:p></o:p>

	“The bubble is the buzz around the valuation and valuations are dependent on who invests and in what context valuation is seen. Valuations in the VC world have a very different meaning. There are a lot of terms and conditions that go in funding termsheets. We interpret it in simplistic manner. So say, a VC invests Rs 100 million in a company at a certain stake and he values the company at 9 billion, it doesn’t mean the fundamental value of the company stands at Rs 9 billion. It doesn’t matter to investors because they have a downside protection always. Beyond actual money, the valuation is implied valuation. When it is corrected, it erodes the paper wealth of the founders or, to certain extent of employees, who have the common stock and not the preferred stock,” Bharat explains.<o:p></o:p>

	VCs on the other hand have preferred stock that is more like a debt-like instrument. So what they are investing in is more like a debt-like instrument rather than pure play equity which is at the same risk as the founder’s common stock. The attraction only is that it comes with additional rights that either protects the VC or helps increase the value of investment (at the expense of common stock holders). So for example VCs usually ask for a liquidation preference, so that if the company gets sold they get paid before any common stock holders.<o:p></o:p>

	“Moreover, there's lot of non-VC money that is also flowing into these companies that increases the valuation. Significant funding these days are also coming not only from financial investors but corporate too, let’s not forget that. So, I don’t think the bubble is going to hurt as much as we have seen in the past,” says Bharat.<o:p></o:p>

	In view of the fact that a lot of venture capitalists seeing India positively in terms of the size of market, funding is much more easily available now. Apart from Bangalore, there are lot of startup hubs coming up in the country. In fact, the start-up era in India is booming but to be able to build an ecosystem like that in the Silicon valley and attract more investments, the government plays a key role and it needs to bring clarity on regulations, according to Bharat. <o:p></o:p>

	“The regulatory angle comes into picture once you grown to a considerable size and you want to raise capital apart from venture capital. In general, the ease of business can improve when there is more clarity in regulation and the speed with which the government can address stumbleblocks. They have been moving in that direction but if you want India to become an innovation hub, you need to react fast and think ahead for investments to get attracted,” he says. <o:p></o:p>

	As for the performance of startups, Indian e-commerce companies, Bharat says, have got it right as websites like Flipkart and <keyword id="541988" type="COMPANY" weightage="100" keywordseo="SnapDeal">Snapdeal</keyword> are increasingly investing in technology. However, most of the businesses, he says, are internet driven and in terms of hard technology, India still has a long way to go.<o:p></o:p>

	About global customized research and analytics firm Aranca, Bharat says: In India, there's not much focus on stock options. As the portfolio of India grows and starts seeing valuations seriously, Aranca plans to make a mark using its knowledge and experience of working in the US market. It has already has marquee clients here. The company’s valuation opinions assist clients in complying with tax regulations and financial reporting standards, and executing transactions, including mergers and acquisitions, fairness opinions for fiduciary duties and strategic planning. 
	 Recently, Mark Shifrin, ASA, has joined as the Vice President of Valuation &amp; Advisory Services. He has more than 16 years of valuation experience in providing services to publicly-held and privately-owned companies in manufacturing, distribution and IT, including internet, software and biotechnology industries. He will be helping Aranca meet an increasing demand for valuation services related to the diverse transaction and reporting needs of start-up, growth-stage and well-established private companies and <keyword id="34499" type="POSITION" weightage="100" keywordseo="private-equity">private equity</keyword> firms, including in India.

	"Aranca’s differentiation is built around strong credentials and deep experience in business valuation, coupled with complementary capabilities in investment research, market intelligence and intellectual property research. Aranca’s diverse global clientele presents significant untapped growth opportunity for the valuation practice," Shifrin said. 
	 
	"This is an exciting time for the firm as it expands its role in the U.S., and I look forward to helping Aranca clients understand and successfully navigate their competitive business environments." 
	 
	(Image credit: Economic Times)<o:p></o:p>

Exclusive: Indian startups will survive the tech bubble, says Aranca's AVP

<ul><li>Edtech company Byju's is now <keyword id="3658" type="LOCATION" weightage="20" keywordseo="India">India</keyword>'s most valuable unicorn startup with a valuation of $16.5 billion, surpassing fintech company <keyword id="6357120" type="COMPANY" weightage="20" keywordseo="paytm">Paytm</keyword>'s $16 billion valuation.</li><li>Byju's is the 11th most valuable startup in the world.</li><li>The total number of unicorns worldwide is 708 with a valuation of $ 2319 billion. Chinese company Bytedance, the parent company of TikTok, is the most valuable startup in the world with a valuation of $140 billion.</li></ul>Edtech company Byju's is now India's most valuable unicorn startup with a valuation of $16.5 billion, surpassing fintech company Paytm's $16 billion valuation. As per CB Insights data, as of June 2021, Byju's is the 11th most valuable startup in the world. The total number of unicorns worldwide is 708 with a valuation of $ 2319 billion. Chinese company Bytedance, the parent company of TikTok, is the most valuable startup in the world with a valuation of $140 billion. Byju's investors include Tencent Holdings, Lightspeed India Partners and Sequoia Capital India. It has recently raised $350 million from UBS, private equity giant Blackstone, Abu Dhabi state fund ADQ, Phoenix Rising and video conference firm Zoom's founder Eric Yuan. One97 Communications, the parent company of Byju's, has a valuation of $16 billion with investors like Intel Capital, Sapphire Ventures and Alibaba Group. A unicorn company, or unicorn startup, is a private company with a valuation over $1 billion. As of June 2021, there are more than 700 unicorns around the world. Popular former unicorns include Airbnb, Facebook and <keyword id="6355629" type="COMPANY" weightage="20" keywordseo="google">Google</keyword>. The variants include a decacorn, valued at over $10 billion, and a hectocorn, valued at over $100 billion, CB Insights said. Oyo Rooms is valued at $9 billion with investors like SoftBank Group, Sequoia Capital India and Lightspeed India Partners. The National Stock Exchange is valued at $6.5 billion with investors including TA Associates, SoftBank Group and GS Growth. Ola Cabs is valued at $6.3 billion and has investors like Accel Partners, SoftBank Group and Sequoia Capital. Zomato is valued at $5.4 billion with investors including Sequoia Capital and VY Capital. Another food delivery chain, Swiggy, is vaued at $5 billion and its investors include Accel India, SAIF Partners and Norwest Venture Partners. Internet software company Dream11 is valued at $5 billion with investors including Kaalari Capital, Tencent Holdings and Steadview Capital. Logistics company Udaan is valued at $ 3.1 billion and has investors including DST Global, Lightspeed Venture Partners and <keyword id="10387" type="COMPANY" weightage="20" keywordseo="Microsoft">Microsoft</keyword> ScaleUp. Fintech company Razorpay is valued at $3 billion with investors like Y Combinator, Tiger Global Management and Matrix Partners India. Fintech company Pine Labs is also valued at $3 billion with investors namely MasterCard, Temasek and PayPal Ventures. Logistics company Delivery is another firm that is valued at $3 billion with investors including Times Internet, Nexus Venture Partners and SoftBank Group. Policybazaar is valued at $2.4 billion, Renew Power at $2.28 billion, fintech company CRED at $2.2 billion, consumer company FirstCry at $2.1 billion, software company Meesho at $2.1 billion, while <keyword id="3358959" type="COMPANY" weightage="20" keywordseo="ShareChat">Sharechat</keyword> is also valued at $2.1 billion. Edtech copany Unacademy is valued at $2 billion, ecommerce company Urban Company is valued at $2.1 billion, BillDesk at $1.9 billion and DigitInsurance at the same number. Lenskart is valued at $1.5 billion, Five Star Business Finance at $1.4 billion, Rivigo at $1.07 billion, Snapdeal at $1 billion as also Inmobi, Ola Electric, Cars 24, Daily Hunt, Infra Market and Groww. (Sanjeev Sharma can be reached at Sanjeev.s@ians.in) --IANS san/arm

You Searched For "Snapdeal valuation" and got 6 results

After Snapdeal rejects Flipkart’s offer, it may merge with Infibeam and form a $2 billion company

Paytm’s owner to raise over Rs 12,000 crore from SoftBank; single largest funding round so far in the industry

BI India Bureau

Oyo Rooms’ valuation to touch $850 million, this will be the size of its funding

BI India Bureau

SoftBank’s latest investment in Jasper Infotech might bring its valuation down to half

BI India Bureau

Exclusive: Indian startups will survive the tech bubble, says Aranca's AVP

Anushree Singh

Byju's most valuable startup in India and 11th in the world with a valuation of $16.5 billion

IANS

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