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Snapdeal in talks to acquire Shopclues

twitter-logo PTI        Last Updated: May 22, 2019  | 11:03 IST

New Delhi, May 22 (PTI) E-commerce platform Snapdeal is in talks to acquire rival ShopClues in a deal likely to be pegged around USD 200-250 million, according to sources. Snapdeal has started the due diligence process and is likely to take a call on the acquisition over the next few weeks, the sources close to the development said. When contacted, a Snapdeal spokesperson declined to comment, while ShopClues said the company does not comment on market rumours. The two e-commerce companies have engaged in such discussions in the past as well, but this is the first time that it has made it to the due diligence phase. One of the sources said the deal will be an all-stock deal and is expected to be valued between USD 200-250 million. ShopClues' investors, including Singapore’s sovereign wealth fund GIC, Helion Venture Partners, Tiger Global, Nexus Venture Partners and Unilazer Ventures, are expected to exit post the deal. NVP is also an investor in Snapdeal. The deal, if it goes through, will help the two companies compete together more aggressively against giants like Walmart-owned Flipkart and Amazon in the Indian market. Snapdeal, which walked away from a deal with Flipkart in 2017 to chart its own independent strategy for growth, has managed to bring down its consolidated loss substantially to Rs 613 crore for FY2017-18 from Rs 4,647.1 crore in FY2016-17. The company had stated that it is focussing on maximising the operating efficiency of its marketplace and implementing its planned growth initiatives. ShopClues (which is registered as Clues Network) had also narrowed its losses to Rs 2.08 billion (Rs 208 crore) for the year ended March 2018 compared to a loss (after tax) of Rs 3.47 billion (Rs 347 crore) in 2016-17. The company - which has raised about USD 250 million so far - focusses on tier II and III cities. PTI SR BAL BAL

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