New Delhi: In what could make it India's biggest e-commerce merger, a news paper has reported that online retailer Snapdeal will merge with its biggest rival –Flipkart.
As per a news in the Times of India, Japanese giant SoftBank is “orchestrating a possible merger” between the two.
“SoftBank is likely to invest up to $1.5 billion in the merged entity by picking up primary and secondary shares, giving it around 15% in the Flipkart-Snapdeal combine,” the TOI report said.
“ The deal may include a $1 billion share sale by Flipkart's largest investor, New York-based Tiger Global, along with an infusion of fresh equity by SoftBank,” the TOI report further said.
Snapdeals hoping to hit profitability in the next two years as it undertakes a number of steps, including layoffs and moving away from non-core activities.
The company had laid off 500-600 employees across verticals even as Co-Founder Kunal Bahl admitted to making mistake in growing much before it could figure out right economic model.
Snapdeal, earlier this month, had announced shutting down of its consumer to consumer marketplace Shopo. As part of the revival plan, the company will reorganise into "a lean, focussed and entrepreneurial one" by combining teams, reducing layers, eliminating non-core projects and strengthening focus on profitable growth.
Snapdeal, which faces intense competition from Amazon and Flipkart, had last reported an employee strength of 8,000.
