SoftBank backed online marketplace
Snapdeal is in talks with local rivals Paytm E-Commerce and Flipkart for a potential sale of the company.
Japan's Softbank Group, which is a lead investor in Snapdeal, is leading the sale talks, and the deal could value the online retailer at less than the total equity raised by parent Jasper Infotech Pvt Ltd. Softbank is expected to inject up to $50 million in bridge financing until a deal is finalised. Japan's Softbank Group, which is a lead investor in Snapdeal, is leading the sale talks, and the deal could value the online retailer at less than the total equity raised by parent Jasper Infotech Pvt Ltd. Softbank is expected to inject up to $50 million in bridge financing until a deal is finalised.
It is also that Snapdeal is in more advanced talk with Alibaba backed Paytm's e-commerce platform rather than with Flipkart. However, a Snapdeal spokesperson denied the report of sale talks with Paytm and Flipkart, according to a media report.
Softbank is expected to inject up to $50 million in bridge financing until a deal is finalised, the newspaper reported. Snapdeal, Flipkart and Paytm were not immediately available for comment after regular business hours in India.
In a bid to turn a profitable, there is an intense competition in the market, that Snapdeal has been fighting for. Recently, in the last month it lay off close to 600 employees as the founders had to forego their salaries. Snapdeal reported a loss of 29.6 billion rupees ($14.93 million) in the financial year to March 31, 2016, according to regulatory filings.
BW Reporters
Soumya is a young writer and journalist, with bachelors in Multimedia and Mass Communication. She is an alumini of the Asian College of Journalism, and finds politics and sustainability intriguing beats to work with.
