Indian e-commerce is all set to become more competitive as Snapdeal is looking to making a comeback by acquiring its rival Shopclues at a likely valuation of $200-250 million. The final decision expected soon, according to a report by The Economic Times.
The deal will see ShopClues investors get one Snapdeal share for every nine they hold if the merger goes according to the planned structure. This will give ShopClues investors a 10% stake in the combined entity.
The deal is expected to be a 100% buyout, with all of ShopClues’ investors, including Singapore’s sovereign wealth fund GIC, Helion Venture Partners, Tiger Global, Nexus Venture Partners and Unilazer Ventures, rolling into Snapdeal, reads the report of Economic Times.
Snapdeal co-founder and CEO Kunal Bahl hasn’t responded to this, while a ShopClues spokesperson said the company will not comment anything based on market rumors.
“We have, in the past, and will continue to in the future, pursue partnerships and commercial relationships with ‘rivals’ if it helps us serve our consumers better,” said a spokesperson for ShopClues.
Talking about the sales of both these platforms, Snapdeal completes around 200,000 orders daily, while ShopClues records around 30,000 orders. Amazon and Flipkart receive daily orders of around 600,000.
Taking a view on traffic, Shopclues’ web and mobile web traffic has fallen to 11 million in April from 16 million in November last year, while Snapdeal’s rose to 82 million from 68 million in the same period.
Note that, Snapdeal attempted a merger with Flipkart in 2017 a deal which eventually collapsed.