Earlier this week, Snapdeal agreed to sign a non-binding Letter of Intent (LoI) for the merger with Flipkart. Flipkart will be merging the Snapdeal entity at a valuation of just $1 Bn. The deal is expected to get signed in the next five-seven days. Nexus Venture Partners is speculated to receive $100 Mn along with a stake in the new entity. Kalaari Capital is expected to get around $70 Mn-$80 Mn, while the Snapdeal founders will get $30 Mn each post their exit from the company.
The decision came after SoftBank wrote off nearly $1.4 Bn in the combined Ola and Snapdeal valuation, for the quarter ending March 2017.
Next up, Paytm signed a non-exclusive term sheet to acquire FreeCharge, a Jasper Infotech-owned company. Paytm will start the financial and commercial due diligence of FreeCharge, next week. The deal has been estimated between $45 Mn–$90 Mn, a much lower valuation than FreeCharge’s $450 Mn valuation in 2015. The company had earlier held discussions with MobiKwik as well.
This week 20 startups raised about $22 Mn in funding altogether. (Funding calculations are based on startups that disclosed their funding amounts.)
Startup Fundings Of The Week
LegalRaasta: Delhi-based legaltech startup LegalRaasta raised $5 Mn in Series A round of funding led by Impanix Capital. The startup will utilise the raised funds in building GST compliance software for SMEs, CAs and enterprises. Also, Senior VAT official, RK Jain has joined the company’s Board as an advisor.
RemitGuru: The joint entity of Infibeam- CCAvenue will invest $466K in digital money transfer platform, RemitGuru. Infibeam will partially acquire Avenues Payments and will invest $310K and the remaining $155K would come from CCAvenue. CCAvenue holds a 26.76% stake in Mumbai-based RemitGuru.