Flipkart Snapdeal Paytm, these are three names that have taken the Indian e-commerce to the new heights. However, nothing seems to be going well with the Indian companies. Huge foreign investments are at stake and the global players like Amazon are giving nightmare. Snapdeal may become the first victim of this wobbling e-commerce industry.
As per the reports of TOI, the SoftBank, the leading investor of the Snapdeal has decided to go for something radical to revive the invested amount. Apparently, the Snapdeal has been chosen three options for future. The first would be the Flipkart Snapdeal merger which is most preferred and feasible at this point in time. It has been reported that the Flipkart has agreed for the concept and is already in talks.
However, the talks are in with Tiger Global, the largest investor in Flipkart for the proposed merger. Apart from it, SoftBank is also looking for the merger with the Alibaba led Paytm merger with the Snap deal. The already struggling Snap deal may have to opt for either of the options.
However, Snapdeal has been given the third option as well but it is obvious that the e-commerce company will not go for this. SoftBank has told that the e-commerce company can also write off the investment to zero if the merger is not sought.
If the merger goes through, then it can be one of the biggest mergers of India. Flipkart was valued at around $12 billion USD. However, the new funds from the Vision Funds under the SoftBank may give Flipkart the boost to wrestle with the Amazon in the Indian market.