SoftBank has approved on the Snapdeal’s merger with Flipkart. This Japanese investment giant has given a non-binding approval for this.
Softbank gets 20% stake in the merger entity
The SoftBank board has participated in a meeting which was held in Japan where it gave an in-principle nod for acquiring a 20% stake in the merger entity of Snapdeal-Flipkart. It also approved for the plan to buy out existing investors of Snapdeal ahead of the merger deal. The in-principle clause requires approval from the merging companies and Snapdeal’s investors.
Why Softbank propsed Snapdeal sale
Because of heaping misfortunes, seller complaints, and revoked subsidizing offers, Snapdeal’s greatest investor, SoftBank had proposed the offer of the organization to its rival Flipkart, India’s largest online commercial center.
Resistance from other investors
However, it had been confronting resistance from other early capitalists Kalaari Capital and Nexus Venture Partners and they had requested $100 Mn each from the proposed deal.
Apart from Snapdeal’s sale, the Japanese investor is also interested to put its digital payment subsidiary called Freecharge on the market at 50% discount. It is also revealed through a report that Freecharge was in talks with Mobikwik, Gurugram based mobile wallet company for a potential merger.
Other investments by the Japanese investor
Additionally, SoftBank seems to have a hectic time in April of this year when it seems busy with some other investment in:
- OYO Rooms
One other investment come in to scenario by this capitalist, an investment of $250 million in OYO Rooms which evaluates the company at $850 million and own a stake of 42% of the company.
- Grofers and Bigbasket
It also took interest in cab hailing marketplace and put an amount of $260 million in the parent company of Ola, ANI Technologies Pvt. Ltd.
So it seems that, the Japanese investor SoftBank holds the majority of hot startups and spaces in the startup ecosystem of India and it seems to stay for the long run.