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.