Reportedly, Snapdeal is close to acquiring its nearest rival ShopClues. The fourth largest e-commerce player in India will soon finalise this merger in the next few weeks. The estimated worth of this deal is somewhere between $200 – $250 million. As per the sources, this merger will also see the exit of ShopClues’ investors – Singapore’s sovereign wealth fund GIC, Helion Venture Partners, Tiger Global, Nexus Venture Partners and Unilazer Ventures. However, if the merger goes as planned, Snapdeal in this all-stock deal may give these investors ‘One Snapdeal Share’ for every ‘Nine Shares of Shopclues’ that they hold. The company may also give ShopClues’ management and founders “small exit cash” as per the sources. This move by the Snapdeal comes as a turnaround from its long struggle of existential crisis that had continued since 2017. The same year, the company had survived a failed merger with Flipkart.
Source: Bloomberg Quint