Snapdeal founders, Nexus reach deal with SoftBank for sale to Flipkart

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Snapdeal and SoftBank were not immediately reachable for comment, while Nexus declined to comment.

Further, reports suggest that Paytm is in talks with Snapdeal's largest investor, Japanese-based SoftBank, for fresh inflow of funds worth over $1.9 billion.

"SBG recorded loss from financial instruments of 160,419 million Japanese Yen ($1.4 billion) in its consolidated financial statements for the fiscal year ended March 2017".

The financial instruments at FVTPL include preferred shares of Jasper Infotech (Snapdeal) and ANI Technologies (Ola), it added. Ltd, which runs snapdeal.com, an e-commerce site in India, and ANI Technologies Pvt.

Besides Snapdeal and Ola, SoftBank is also an investor in hotel booking platform Oyo Rooms, e-grocer Grofers, and Housing (which it sold to PropTiger last year).

As per the report, sources have told ET that Paytm will begin financial and commercial due diligence of the deal next week.

Earlier on Wednesday, Softbank issued a press release and said: "Highly competitive e-commerce market in India has made a trend of the company's business performance lower than initially anticipated". When that happens, the number of merger & acquisitions in the market go up.

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SoftBank, which has committed investments of $10 billion in India, has been working on a plan to sell Snapdeal to larger rival Flipkart. The deal would also include SoftBank spending around $1.5 billion to buy-out a double-digit stake held by United States investor Tiger Global in Flipkart.

However, a significant chunk of such investments have shown little signs of recovery, prompting SoftBank to scout for mergers.

Disclosure: FactorDaily is owned by SourceCode Media, which counts Accel Partners, Blume Ventures and Vijay Shekhar Sharma among its investors. NVP has been an early investor in Snapdeal.

"Freecharge had approached Paytm earlier this week for the deal", said one of the sources. "After sustained discussions, they (Kalaari Capital) are now on board..." According to the filings with the registrar of companies (RoC), Snapdeal had Rs 1,072.2 crore as cash and bank balances as on March 31, 2016.

A board meeting is expected to take place tomorrow to deliberate upon the issue.

"Once the deal is done, Snapdeal founders Kunal Bahl and Rohit Bansal would leave the organisation", VCCircle quoted a person familiar with developments as saying.

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