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Snapdeal Acquisition May Give Flipkart the “Softbank” Edge

April 10, 2017

Snapdeal Acquisition May Give Flipkart the “Softbank” Edge

Flipkart’s absorption of Snapdeal will be one of the biggest transactions in the e-commerce domain in India, if it goes through. However, experts believe that it may not make a huge difference for Flipkart, which is already one of strongest online stores in India, except for the fact that it will get support from the SoftBank Group, which is a key investor in Snapdeal.
Key points:

  • According to analysts, it is possible that SoftBank will try to buy out the other small investors to gain more equity in the company.
  • Since Amazon is Flipkart’s biggest rival in India, with SoftBank’s backing it will be able to give it some serious neck to neck competition.
  • Paytm, which is backed by Alibaba, has also reportedly discussed a potential acquisition of Snapdeal. However, since its valuation of Snapdeal is lower than Flipkart’s the offer is likely to fall through.

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