Update (May 12th): The deal is pretty much done. Wait for the final announcement.
Snapdeal founders will get $30mn cashout and won’t be joining Flipkart post merger (via).
The great Indian ecommerce chutzpah moment is here and the two big players, Snapdeal and Flipkart are hitting the bed pretty soon.
There are several reports that tell us that the deal is a done deal. From what we know*, Softbank will invest $1Bn in the combined equity. Softbank has also bought out Kalaari and Nexus equity. The valuation of Snapdeal is close to $3Bn.
What about Snapdeal founders? Well, they are on zero diet salary but will get close to $20mn (they wanted $100mn).
More details as we get them – but these gifs sort of convey the story.
This is how Snapdeal was presented to the ‘potential’ acquirers.
Lotsa PR. Lotsa paid stories in the media. That ‘beautiful and susheel’ kanya.
Now that the deal is done, this is what Snapdeal founders are doing. They did know that this was a sinking ship and they had funding left for only few months.
And maybe this too
What about Flipkart?
Flipkart is now Myntra + Jabong + Snapdeal + Freecharge+ Flipkart.
A serious mess. Too many hands..too many politicians..too much of chaos. Like Snapdeal, expect FK to be sold very soon?
What about Flipkart founders
They really don’t have much to say right now. Tiger is running the show (not Shroff, but their investor :))
And what about the BIG BADASS Amazon?
They are just killing it.
They are still executing. No PR. No ego massaging over newspaper ads.
And the world out there? Everyone is going to have a ‘See! I told you so’ moment.
Will the two (no, three..no four..) live happily afterwards?
Well, these are all forced marriages and purely driven by investors. So don’t expect anything great coming out of this. Expect layoffs, vendor issues and more time for Amazon to win this market.
*Source: There are enough hush-hush talks in the ecosystem and many numbers are being thrown, but this is the first public info right now. We will update the details as and when we get more info.