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Online Retailer Snapdeal Likely To Acquire Rival ShopClues For $250 Million
Snapdeal website (Jon Russel/Flickr)
Online retailer giant Snapdeal is looking all set to acquire its rival ShopClues at a valuation of $200-250 million, reports Livemint.
With the Walmart acquiring market leader Flipkart, this potential acquisition will mark further consolidation of India's e-commerce sphere. It is reported that ShopClues is in talks with Snapdeal over a potential acquisition and it is Nexus, a common investor between the two, is the one that initiated the deal.
"We have, in the past, and will continue to in the future, pursue partnerships and commercial relationships with 'rivals' if it helps us serve our consumers better," said a spokesperson for ShopClues. The firm claims to have cut losses from Rs 210 crore in FY18 to Rs 45 crore in FY19 while keeping a flat growth in revenue.
The investors are supposed to pick up a 10 per cent stake in the combined entity, while the founders of ShopClues will exit the company.
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