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Snapdeal Valuation Falls To $1 Bn, Founders To Get $30 Mn Each Post Exit

Snapdeal Valuation Falls To $1 Bn, Founders To Get $30 Mn Each Post Exit

After a long haul with the investors, SoftBank and Flipkart have finally succeeded in their mission – ‘Snapdeal Merger.’ Reportedly, Flipkart will be merging the Snapdeal entity at a valuation of just $1 Bn.

Earlier this week, Inc42 reported that Snapdeal has agreed to sign a non-binding Letter of Intent (LoI) for the merger. 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.

Snapdeal was valued at $6.5 Bn during its $200 Mn funding round in February 2016 led by Ontario Teachers’ Pension Plan, Iron Pillar, Brother Fortune Apparel and Bennett Coleman & Co. The decision came after SoftBank wrote off nearly $1.4 Bn in the combined Ola and Snapdeal valuation, for the quarter ending March 2017.

After SoftBank gave the final go-ahead to the proposed merger, the deal hit a roadblock when Nexus Venture Partners refused to settle on the valuation. But, after a few days, Nexus came onboard with the sale of Snapdeal.

Till date, SoftBank has invested about $900 Mn in the company and has a 33% stake. Kalaari and Nexus hold 8% and 10% stakes respectively, and the founders, Kunal Bahl and Rohit Bansal have a combined stake of 6.5% in the company.

Author

Meha Agarwal

Inc42 Staff

Meha has engineering and MBA degrees, but she has always been a writer at heart. It was the perfect combination of utilising her research and analytical skills and her enthusiasm for writing that sparked her interest in writing about the Indian startup ecosystem – the latest tech and gadgets and the startups that create them. She is always on the lookout for industry-specific stories in niche areas of interest such as ecommerce, fintech, greentech and more.

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