New Delhi-based startup Snapdeal, an internet-retail shopping platform is closer to acquire its competitor, ShopClues in an all-stock deal. The progress came after the previous deal fell apart because of financial disagreement.
If the buyout of ShopClue is happening, then there is a complete chance of the selling company’s investors like Helion Venture Partners, Tiger Global, Nexus Venture Partners, Singapore’s sovereign wealth fund GIC, and Unilazer ventures move to Snapdeal.
It will be a cherry on the top for ShopClues investors if the incorporation deal goes as they orchestrated, as they get one Snapdeal share for every nine shares they hold. The agreement gives the investors a 10% stake in the combined entity.
Shopclue founders Sanjay Sethi and Radhika Aggarwal seem to make a little cash exit as a part of the agreement. But it appears that the process in final shake hands is going on and the decision is expected soon.
As per media reports, ShopClues is in a process to escape the collapse of its operations and was in search of a buyout by Snapdeal. Past two years, the company has lost its charisma, and the orders dropped to less than 30k per day. The e-tailer is also losing money every month.
ShopClues is a Gurgaon-based e-shopping platform founded in July 2011 by Radhika Aggarwal, Sanjay Sethi, and Sandeep Aggarwal. It well managed to hold the marketplace by providing a unique internet shopping experience to the customers.
It was rumored that last year in July, global online shopping platform eBay had held talks with ShopClues for incorporation. Not only eBay but it also held discussions with other major e-commerce players, namely Flipkart, Snapdeal, and Paytm Mall for substantial acquisition deal.
In January 2016 the company in its series E funding round had raised $100 million at a $1.1 billion valuation from Tiger Global Management, Nexus Venture Partners, and GIC. It also raised Rs 110 crore from its existing investors in August 2018.
