According to a report in CNBC TV18, the SoftBank board has given an in-principle nod to gain 20 percent stake in the Snapdeal-Flipkart merged entity as well as approving a plan to buyout Snapdeal investors prior to the merger. Any proposed merger will be subject to clearance from the ecommerce companies’ other investors.
A merger between the two ecommerce heavyweights has long been rumoured as the Indian ecommerce space heads towards further consolidation. However, it is not yet clear how much Snapdeal is being valued at.
Apart from the Snapdeal-Flipkart merger, it also seems that Softbank is interested in going ahead with an investment in Paytm. According to media reports, Paytm is set to raise Rs 12,000 crore from SoftBank, which would make it the single largest investment in an ecommerce company. The deal is expected to close by the end of May and would see SoftBank pick up a 20 per cent stake in the mobile wallet.