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.
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 999/year is the best way you can support our efforts.