SoftBank-backed Snapdeal in deal talks with rivals Flipkart, Paytm

Indian online marketplace Snapdeal is in talks with domestic rivals Paytm E-Commerce Pvt Ltd and Flipkart for a potential sale,  Mint reported on Wednesday, citing sources.

However, a Snapdeal spokesperson denied the report of sale talks with Paytm and Flipkart, according to the newspaper.

"Your information is incorrect and without basis. We are making decisive progress in our journey towards profitability and all our efforts are aligned in this direction", the spokesperson said in an email to Mint.

Kunal Bahl. Co-Founder and CEO, Snapdeal . Image courtesy Snapdeal

Kunal Bahl. Co-Founder and CEO, Snapdeal . Image courtesy Snapdeal

Japan's Softbank Group, an 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, the newspaper reported.

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 profit in the intensely competitive market, which is dominated by homegrown Flipkart and US internet giant Amazon , Snapdeal said last month that it would lay off 600 employees and its founders would 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.


Updated Date: Mar 22, 2017 07:57 AM

Also Watch

Social Media Star: Abhishek Bachchan, Varun Grover reveal how they handle selfies, trolls and broccoli
  • Monday, July 16, 2018 It's a Wrap: Soorma star Diljit Dosanjh and Hockey legend Sandeep Singh in conversation with Parul Sharma
  • Monday, July 16, 2018 Watch: Dalit man in Uttar Pradesh defies decades of prejudice by taking out baraat in Thakur-dominated Nizampur village
  • Monday, July 16, 2018 India's water crisis: After govt apathy, Odisha farmer carves out 3-km canal from hills to tackle scarcity in village
  • Sunday, July 15, 2018 Maurizio Sarri, named as new Chelsea manager, is owner Roman Abramovich's latest gamble in quest for 'perfect football'

Also See