Finally, Nexus Venture Partners have agreed on the sale of Snapdeal to Flipkart. Though Snapdeal founders and Kalaari Capital had given a go-ahead sign for the merger. Nexus Venture Partners was not in agreement over the valuation.
Once valued at $6.5 Billion, Snapdeal now is about to be sold at a mere $1 Billion valuation.
According to sources, with this deal, Snapdeal founders will get about $20-$25 million each. Kalaari Capital which holds 8% of the company could get around $70-$80 million, while Nexus Venture will get $100 million, and stake in the merged entity.
SoftBank has invested nearly $900 million in Snapdeal and hold two seats on Snapdeal’s board, whereas Nexus and Kalaari hold one each.
Snapdeal’s other investors include SoftBank-backed Chinese e-commerce company Alibaba, Taiwanese contract electronics manufacturer Foxconn, e-tailer eBay Inc., media company Bennett Coleman & Co. Ltd, and venture capital investors such as Bessemer Venture Partners, Intel Capital, Iron Pillar, and Ratan Tata.
Online payment firm PayTM was also in talks to acquire Snapdeal in initial days, however, it backed off over the valuation issues. PayTM is said to acquire Snapdeal-owned Freecharge, reports suggest.