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After <keyword id="6354742" type="COMPANY" weightage="100" keywordseo="Flipkart">Flipkart</keyword>’s offer of $800-$850 million got rejected by <keyword id="541988" type="COMPANY" weightage="100" keywordseo="SnapDeal">Snapdeal</keyword>, the Indian e-commerce giant is planning to make a new one. Reportedly, Flipkart might offer $900-950 million for buying Snapdeal. Snapdeal had asked for $1 billion for acquisition and this new offer is somewhat near to the asking price. PTI quoted sources as saying the deal is not finalised yet and the new offer will be made only next week. Snapdeal's board has already rejected a takeover offer of $800-850 million (around Rs 5,500 crore) from Flipkart as it felt the amount undervalued the company given that the due diligence report was clean. <keyword id="163404" type="COMPANY" weightage="20" keywordseo="Softbank">SoftBank</keyword>, Snapdeal's largest investor, has been proactively mediating the sale for the past few months. The board of Snapdeal also has representation from its founders (<keyword id="219793" type="PERSON" weightage="20" keywordseo="Kunal-Bahl">Kunal Bahl</keyword> and Rohit Bansal), Nexus Venture Partners and Kalaari Capital. Meanwhile, Snapdeal is also looking for buyers to sell <keyword id="3489561" type="UNKNOWN" weightage="20" keywordseo="vulcan-express">Vulcan Express</keyword>, its logistics arm. Snapdeal's valuations have also plummeted from about $6.5 billion in February 2016. SoftBank has already written off over $1 billion on valuation of its investment in Snapdeal.

This is the new offer Flipkart might make to Snapdeal. Here are the details

Talks between <keyword id="6354742" type="COMPANY" weightage="100" keywordseo="Flipkart">Flipkart</keyword> and <keyword id="541988" type="COMPANY" weightage="100" keywordseo="SnapDeal">Snapdeal</keyword> have hit another hurdle as the Snapdeal board has refused a takeover offer of $800-850 million, or nearly Rs 5,500 crore. PTI quoted sources as saying Flipkart has completed the due diligence process and has made an offer of USD 800-850 million to buy Snapdeal. However, Snapdeal's board felt the amount undervalued the company. "The first offer has been rejected but talks are still on. It is an ongoing discussion," one of the sources told PTI. <keyword id="163404" type="COMPANY" weightage="20" keywordseo="Softbank">SoftBank</keyword>, the Snapdeal's largest investor, has been proactively mediating the sale for the past few months. The board also has representation from Snapdeal founders (<keyword id="219793" type="PERSON" weightage="20" keywordseo="Kunal-Bahl">Kunal Bahl</keyword> and Rohit Bansal), NVP and Kalaari Capital. The deal between Snapdeal and Flipkart, if completed, would mark the biggest acquisition in the Indian e-commerce space. Compared to a valuation of about USD 6.5 billion in February 2016, the sale to Flipkart could see Snapdeal being valued at about USD 1 billion. SoftBank has already written off over USD 1 billion on valuation of its investment in Snapdeal.

Snapdeal rejects Flipkart’s $850 million offer

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="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 biggest strategic investor in <a href="http://www.businessinsider.in/searchresult.cms?query=indian+startups&amp;sortorder=effectivedate">Indian startup ecosystem</a> <a href="http://www.businessinsider.in/searchresult.cms?query=softbank&amp;sortorder=effectivedate">SoftBank Group</a> registered a loss of nearly $350 million from <a href="http://www.businessinsider.in/searchresult.cms?query=snapdeal&amp;sortorder=effectivedate">Snapdeal</a> and <a href="http://www.businessinsider.in/searchresult.cms?query=ola&amp;sortorder=effectivedate">Ola</a>. 
 These two startups are <keyword id="163404" type="COMPANY" weightage="100" keywordseo="Softbank">Softbank</keyword>’s biggest investments in India. Softbank has always maintained it will invest $10 billion in the country. 
 
The figures comes after Softbank reported a loss of over $550 million for the six-month period ending September 30. 
 
"Loss recorded as the amount of change in the fair value of the company's investments, primarily in India, from the previous fiscal year-end to the end of the third-quarter. Of this, a gain of ¥16,133 million was due to foreign exchange rate fluctuation," the company stated its latest earnings report. 
 
It had recorded a gain of ¥108.42 billion for both companies in the year-ago period. 
 <keyword id="6354720" type="PERSON" weightage="20" keywordseo="Ola">Ola</keyword> was valued at about $5 billion after its previous funding round in November 2015, <keyword id="541988" type="COMPANY" weightage="100" keywordseo="SnapDeal">Snapdeal</keyword>'s valuation was pegged at $6.5 billion in February this year.

SoftBank records loss of nearly $350 mn from Snapdeal, Ola

\ 
 E-commerce major <keyword id="541988" type="COMPANY" weightage="100" keywordseo="SnapDeal">Snapdeal</keyword> will shell out an average pay hike of 12-15 percent as it looks to assure employees amid the online marketplace scouting for a potential buyer. 
 
According to sources, the pay revision will be effective from April 1 and will see salaries of employees at the mid and junior-level go up by an average 12-15 percent. 
 
For senior management, the hike will be 9-12 percent, but the company may offer 20-25 percent raise to exceptional performers, they added. 
 
The cash-strapped company is also believed to be distributing nearly 1 percent of its stock to about 150 employees. 
 
Earlier this year, the company's founders had admitted having made mistakes and said they would take a "100 percent cut" in their own salaries. 
 The decision to give such a good pay hike has been taken at a time when Snapdeal's largest investor <keyword id="163404" type="COMPANY" weightage="20" keywordseo="Softbank">SoftBank</keyword> is believed to be working towards a sale of the e-commerce platform and a final decision is likely to be made in the next few weeks. 
 The top contender in the race is <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword>, which has recently received a funding of USD 1.4 billion. 
 Softbank is also in talks with <keyword id="4386851" type="UNKNOWN" weightage="20" keywordseo="kalaari-capital-and-nexus-venture-partners">Kalaari Capital and Nexus Venture Partners</keyword>, who have representation on the board of Snapdeal, to reach a consensus on valuation, sources said. 
 Snapdeal's seven-member board includes representation from investors SoftBank, Kalaari Capital and Nexus Venture Partners, as well as co-founders <keyword id="219793" type="PERSON" weightage="20" keywordseo="Kunal-Bahl">Kunal Bahl</keyword> and <keyword id="396598" type="PERSON" weightage="20" keywordseo="Rohit-Bansal">Rohit Bansal</keyword>. 
 
ALSO READ: <a href="http://www.businessinsider.in/read-what-rohit-bansal-and-kunal-bahl-mailed-snapdeal-employees-amidst-flipkart-acquisition-speculations/articleshow/58108189.cms">Read what Rohit Bansal and Kunal Bahl mailed Snapdeal employees amidst Flipkart acquisition speculations</a>

Snapdeal to dole out up to 15% pay hike amid sell-off buzz

The top Indian startups with valuation of over $1 billion each are on a hiring spree and more than half of all job postings by these unicorns are for fresh graduates, according to recent data from global job site Indeed. The report says four unicorns - <keyword id="541988" type="COMPANY" weightage="20" keywordseo="SnapDeal">Snapdeal</keyword>, <keyword id="6357120" type="COMPANY" weightage="20" keywordseo="PayTM">Paytm</keyword>, ShopClues and <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword> - make up around 90 per cent of all job postings. "Indeed's latest study reveals that more than half (57 per cent) of all job postings by unicorns are for fresh graduates. This is encouraging for millions of young freshers looking to jumpstart their careers with young companies, and being a part of the exciting startup ecosystem," says Sashi Kumar, India Managing Director at Indeed. With the Indian e-commerce market expected to grow at 30 per cent a year, and attain a valuation worth $200 billion by 2026, companies like Snapdeal, ShopClues and Flipkart are experiencing a boom in business. Moreover, digital service providers like Paytm and Zomato too are thriving, given the government's demonetisation drive and push for cashless transactions and the widespread penetration of mobile literacy. Kumar says - "Our earlier study on job flexibility also indicates a trend towards contractual hiring in these firms, which reaffirms the growing affinity among today's new-age job seekers, who look at striking a balance in work- life integration." Snapdeal topped the chart in terms of percentage of total job postings at 53 per cent, followed by Paytm at 23 per cent, ShopClues (11 per cent), Flipkart (4 per cent), Zomato (4 per cent), Ola Cabs (3 per cent) and InMobi (2 per cent) among others. While the top four firms in terms of hiring together make up over 90 per cent of all jobs posted, the region that saw maximum number of postings from these companies is Delhi NCR, with an overwhelming majority of 83 per cent. The Indeed study included an analysis of job postings from Flipkart, Hike Messenger, InMobi, Mu Sigma, Ola Cabs, Paytm, ShopClues, Snapdeal, RenewPower and Zomato, which were identified as the top Indian startups valued at over $1 billion. All job queries posted within the time-frame of October 31, 2016 to October 31, 2017 were considered for this study.

Unicorn startups Paytm, Snapdeal, Flipkart are on a hiring spree in India

<a href="http://www.businessinsider.in/searchresult.cms?query=snapdeal&amp;sortorder=effectivedate" data-type="tilCustomLink">Snapdeal’s</a> three major investors- <a href="http://www.businessinsider.in/searchresult.cms?query=softbank&amp;sortorder=effectivedate" data-type="tilCustomLink">SoftBank</a>, Nexus Venture Partners and Kalaari Capital- have already agreed for e-commerce’s sale out to<a href="http://www.businessinsider.in/searchresult.cms?query=flipkart&amp;sortorder=effectivedate" data-type="tilCustomLink"> Flipkart</a>. But, apart from these, a nod from <keyword id="6419840" type="PERSON" weightage="100" keywordseo="Azim-Premji">Azim Premji</keyword> and <keyword id="6360722" type="PERSON" weightage="20" keywordseo="ratan-tata">Ratan Tata</keyword> is also required as they too have stakes in <keyword id="541988" type="COMPANY" weightage="20" keywordseo="SnapDeal">Snapdeal</keyword>. <a href="https://www.bloomberg.com/news/articles/2017-05-16/flipkart-pact-for-snapdeal-said-to-need-premji-tata-approvals">Bloomberg</a> reported, as per the contract, Snapdeal needs backing from the two of India's most powerful businessmen. Nod from Premji, Tata and other several important investors is still awaited. “If due diligence goes smoothly, a term sheet specifying cash and stock for each shareholder will follow and a final agreement could be signed by mid- to late June,” Bloomberg quoted sources as saying. When the sale happens, Snapdeal's Kunal Bahl and <keyword id="396598" type="PERSON" weightage="20" keywordseo="Rohit-Bansal">Rohit Bansal</keyword> will together receive about $30 million with a similar sum to be set aside for Snapdeal's nearly 2,000 employees. <keyword id="1397792" type="UNKNOWN" weightage="20" keywordseo="Kalaari-Capital">Kalaari Capital</keyword>, one of the two early investors in the startup, is to get $30 million, while Nexus will receive twice that amount for its larger stake, they said. Kalaari's managing director <keyword id="1397790" type="UNKNOWN" weightage="20" keywordseo="Vani-Kola">Vani Kola</keyword>, an early investor in Snapdeal, told Bloomberg that she has resigned from the startup's board. "I was done with what I needed to do,” Kola said, adding that she saw no conflict of interest. Meanwhile, this merger will give a boost to <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword>’s battle against <keyword id="18635" type="CITY" weightage="20" keywordseo="Amazon">Amazon</keyword>, which is pumping in money in its Indian arm to grab a significant share in the market. Flipkart raised $1.4 billion from Tencent Holdings Ltd., Microsoft Corp. and EBay Inc, taking its valuation at $11.6 billion. "This is a landmark deal for Flipkart and for India,” the company's co-founders <keyword id="225032" type="PERSON" weightage="20" keywordseo="Sachin-Bansal">Sachin Bansal</keyword> and <keyword id="6364080" type="PERSON" weightage="20" keywordseo="Binny-Bansal">Binny Bansal</keyword> said in a statement. "This deal reaffirms our resolve to hasten the transformation of commerce in India through technology.

Azim Premji, Ratan Tata’s nod also important for Flipkart-Snapdeal merger

In his first interview to the Indian media post his exit, <keyword id="6371777" type="PERSON" weightage="100" keywordseo="Nikesh-Arora">Nikesh Arora</keyword>, the former second-in-command at <keyword id="163404" type="COMPANY" weightage="100" keywordseo="Softbank">SoftBank</keyword> and successor-in-waiting to founder <keyword id="357983" type="PERSON" weightage="20" keywordseo="Masayoshi-Son">Masayoshi Son</keyword> told Times of India in a recent interview that he’s going to keep in touch with startup founders in India. 
 “I spoke to Kunal (Bahl of <keyword id="541988" type="COMPANY" weightage="20" keywordseo="SnapDeal">Snapdeal</keyword>) this morning. I'm going to help all these guys”, Arora was quoted as saying. When asked about SoftBank’s India investments, Arora argues against the perception that his company was spraying money into the Indian market. 
 Arora said most of their investment in Snapdeal was at $1.2-billion valuation, and calls Housing's $100-million cheque a ‘poor judgment’ on their part. “But every investor makes such calls. We are not the only investor in Housing. There are people who have invested at $15-billion valuation in <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword> and now they are trying to raise money at $10 billion. They should be in the same boat as me”, Arora argues. 
 
While remarking that he ‘really likes’ Oyo, and thinks Grofers has an ‘interesting model’, Arora said India will never be a winner-takes-all market, either in e-commerce or in ride-hailing. 
 
When asked about the current scenario with Indian startups, Arora says the ecosystem has gone ahead of itself and he doesn’t see a lot of upcoming companies that will get funded for $100 million, adding promptly that the team will still ‘keep an eye out’ for any opportunities. 
 
<a href="http://economictimes.indiatimes.com/photo/48539924.cms">Image Source</a>

You Searched For "Snapdeal valuation" and got 9 results

This is the new offer Flipkart might make to Snapdeal. Here are the details

BI India Bureau

Snapdeal rejects Flipkart’s $850 million offer

BI India Bureau

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

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

BI India Bureau

SoftBank records loss of nearly $350 mn from Snapdeal, Ola

BI India Bureau

Snapdeal to dole out up to 15% pay hike amid sell-off buzz

PTI

Unicorn startups Paytm, Snapdeal, Flipkart are on a hiring spree in India

BI India Bureau

Azim Premji, Ratan Tata’s nod also important for Flipkart-Snapdeal merger

BI India Bureau

‘I'm going to help all these guys’: Nikesh Arora on SoftBank’s India investments

Saikat Pyne

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