Home » Indian Startups » Flipkart is acquiring Snapdeal (almost a done deal)…We created a Bollywood story out of it.

Flipkart is acquiring Snapdeal (almost a done deal)…We created a Bollywood story out of it.

Update (May 12th): The deal is pretty much done. Wait for the final announcement.

Snapdeal founders will get $30mn cashout and won’t be joining Flipkart post merger (via).

Earlier:
The great Indian ecommerce chutzpah moment is here and the two big players, Snapdeal and Flipkart are hitting the bed pretty soon.

There are several reports that tell us that the deal is a done deal. From what we know*, Softbank will invest $1Bn in the combined equity. Softbank has also bought out Kalaari and Nexus equity.  The valuation of Snapdeal is close to $3Bn.

What about Snapdeal founders? Well, they are on zero diet salary but will get close to $20mn (they wanted $100mn).

More details as we get them – but these gifs sort of convey the story.

This is how Snapdeal was presented to the ‘potential’ acquirers.

Lotsa PR. Lotsa paid stories in the media. That ‘beautiful and susheel’ kanya.

Now that the deal is done, this is what Snapdeal founders are doing. They did know that this was a sinking ship and they had funding left for only few months.

And maybe this too

What about Flipkart?

Flipkart is now Myntra + Jabong + Snapdeal + Freecharge+ Flipkart.

A serious mess. Too many hands..too many politicians..too much of chaos. Like Snapdeal, expect FK to be sold very soon?

What about Flipkart founders
They really don’t have much to say right now. Tiger is running the show (not Shroff, but their investor :))

And what about the BIG BADASS Amazon?

They are just killing it.

They are still executing. No PR. No ego massaging over newspaper ads.

And the world out there? Everyone is going to have a See! I told you so’ moment.

Will the two (no, three..no four..) live happily afterwards?

Well, these are all forced marriages and purely driven by investors. So don’t expect anything great coming out of this. Expect layoffs, vendor issues and more time for Amazon to win this market.




*Source: There are enough hush-hush talks in the ecosystem and many numbers are being thrown, but this is the first public info right now. We will update the details as and when we get more info.

16 Comments

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  • No One can beat Amazon on quality wise and Product wise.
    Flipkart Products are duplicates and the quality wise service wise it’s worst .Fake Updates and fake commitment from Flipkart.Even present management is Worst.

  • Why Flipkart going for Snapdeal…rush of the things just to show a brave front to investors.

  • from what i understand through all these years, indian e commerce companies time to time beg for money and from the money they receive they start working on lot of things apart from core concept. snapdeal or flipkart or shopclues etc etc are not in a stage of simplifying the process, its more like complexing the system. there is no need for them to give loans to sellers, there is no need for them to hire N number of people and fire them at once, there is no need for them to start shipping companies, no need for them to start ad agencies, no need for them to manufacture products and sell.No need to create various new names and pay huge salaries . just simplify the process of buying and selling a product. simplify the payment cycle provide best customer service experience.. that’s all a buyer or a seller look for.. rest is all waste of money, time, energy.

    • Starting shipping companies … Giving loans to vendors … Manufacturing products …. Paying huge salaries … Making AD agency … Is just to take money out of company in a legal way and fill self pockets nothing else…. Indian customers cannot get satisfied n get addicted for online buying at higher prices… Indians customers will buy only till they give best deals at less then cost prices from their funding money…

    • Hi, You retorted all the possible solutions to convalescent the financial, and operation health of Indian E-commerce Industry. I just want to add an additional point that their model of business was faulty, since their inception, and instead correcting it; they have made it more faultier by each myopic managerial decisions.

  • This is such a sad scene. Instead of helping and supporting a home grown company, we want a outsider to win. Why? What are you gaining out of it? Its so hard to understand you people. Please help and support Indian startups to beat and win… this will make sure the future is bright for new minds to be confident to dream big!

    I hope Flipkart will hold on and beat Amazon to death

    • How subtly do we bring nationalism in a discussion when we fail to reason on ground of efficiency…

      • Efficiency can be compared when there r equal playing fields and btw when amazon was growing back in the day it didn’t have amazon or alibaba as competition….so kudos to Flipkart for doing so grt ….look at things objectively…. Please dont tell me Amazon has nt acquired any cos before

        • Flipkart had a lot of time in India before amazon entered. And your tone suggest we should be proud of guys asking for government sponsored protectionism?

          Also, If you think amazon didn’t have competition when growing then you’ve got some history to read.

          Internet is open. You will survive only by building better product.
          Local retailers survived when flipkart was giving abnoxious discount on goods, far below their MSP, now flipkart should survive amazon.

    • It’s Jeff bezos. He is still the CEO. Not like flipkart. Where Ceo founders are removed and venture capital firm running the show. Jeff will def crush flipkart. It’s not about funds alone. It’s about the reality

    • This is irony of India. if some one trying to do something we always pull there legs inspite of supporting them. I am not saying that flipkart is best or amazon. But flipkart is our home grown company , there might have been issues with there operational model, they must have done lot of mistakes, they have also taken some wrong decision, but who has not done any mistake in there lives. What is more important is to learn from the mistakes, and How can you compare a 10 yr old kid with 21yr adult.

      By the way Amazon is also doing the same thing, they are selling products underpriced even sometimes lower than manufacturing cost. Just for customer acquisition and they want to finish our home grown companies . Over discounting is like a drug and we are stupid enough to get addicted . Once we will get addicted and Amazon is the only one left in the market . Amazon will rip it all and bring back the days of East India Company . Please support our Indian startup , Reading startups stories might be very exiting. But Ask some one who has actually build or trying to build a startup company.

      It’s a takes life to make something worth for consumers, When office becomes home and home becomes office, When your working table becomes your bed. When your life revolves around the cubical. Than a startup is build. When people humiliates you and call you crazy, when your family says you have lost your mind. When other people spending there weekends and celebrating festivals going on vaccations . That entrepreneur still working in his office. Than an startup is build , So if we can’t respect them at least don’t insult them.

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