Things seem to be looking up for ecommerce major Snapdeal as its board members – and three biggest investors – are beginning to resolve issues, which may clear the path for Snapdeal’s sale to either Paytm or Flipkart, reports Mint.
Additionally, SoftBank is also mulling buying a part of the stake ownerd by Kalaari Capital and Nexus Venture Partners, as per the report. Kalaari and Nexus are reportedly seeking $100 million each for their stakes while promoters Kunal Bahl and Rohit Bansal, too have asked SoftBank for a $100 million payout to them and their management team to clear the way for a potential sale.
Sources have told Mint that the board members are willing to reach common ground because of Snapdeal’s condition. The ecommerce major desperately needs the cash.
In the board meeting that took place on Tuesday at Jasper Infotech – Snapdeal’s holdng company – Kalaari Capital MD resigned from the board. Also, SoftBank’s Lydia Bly Jett has joined the board.
SoftBank seems very eager to sell Snapdeal to Flipkart even in a cut-price all-stock deal and then invest more cash in the buyer, sources told Mint. That may well be the best deal on offer, with Snapdeal being valued at around $1 billion, they added.
Meanwhile, Alibaba is not willing to offer even a billion dollars for Snapdeal. But a deal with Alibaba is not completely off the table.
But according to a report in Forbes, Snapdeal’s sale to Flipkart has been finalized and an announcement is likely within the next two weeks.
“The deal could see SoftBank buy a significant chunk of Flipkart’s stake from Tiger Global Management, the largest shareholder in Flipkart. It could in return get Snapdeal,” sources told Forbes.
The Snapdeal boardroom has been a busy place as investors have been almost neck-to-neck with how to go about Snapdeal’s future. As of Monday, Kalaari Capital and Nexus were firm in not wanting to allow SoftBank to directly infuse capital and risk a slide in their holding. However, for both investors, Snapdeal has been their biggest investment and a lot rides on a good deal and a lucrative exit for them.
Meanwhile, as employees of Snapdeal are rattled by reports of a takeover and cash crunch, Snapdeal has been reaching out to them directly brushing off talks of a takeover and promising profit.