SoftBank logs over Rs 9000 cr loss from Indian investments

SoftBank logs over Rs 9000 cr loss from Indian investments

In other news, SoftBank has got a nod from co-investor Nexus Venture Partners (NVP) for sale of Snapdeal to India's largest e-commerce firm, Flipkart, reports PTI.

The deal between Snapdeal and Flipkart, if completed, would mark the biggest acquisition in the Indian e-commerce space and change the landscape of the sector that is witnessing intense competition among players.

The last few months have seen e-commerce companies like Snapdeal, Amazon and Flipkart intensify their efforts to garner for customers and get more sellers on board.

Sources said Snapdeal founders would get about $30 million each, while NVP could get close to United States dollars 80 million and stake in the merged/new entity.

The ET said that Paytm has signed a "non-exclusive term sheet" and if it goes through, the deal is likely to be signed within a month. SoftBank has proposed to hand out $60 million to Nexus and about $30 million to Kalaari.

SoftBank is one step closer to making the hotly anticipated merger between e-commerce websites Snapdeal and Flipkart a reality.

The report also said that the Paytm is in advanced stage of discussions to raise up to USD 1.9 billion in fresh funding from Japan's Soft-Bank that could value it between USD 8 billion and USD 9 billion.

Valued at $6 billion mid of past year, the company has been going through very challenging times since the last 8-10 months as it could not raise funds.

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The valuation has since shrunk on the back of heavy losses.

SoftBank is keen to sell Snapdeal to Flipkart in order to cut its losses on an investment that has not worked well.

ANI Technologies, which runs Ola, reported revenues of Rs 758.23 crore in 2015-16 and a loss of around Rs 2,313.7 crore.

On Wednesday, SoftBank said it had suffered a $1 billion (Rs 6,500 crore) loss on its investment in Snapdeal during 2016- 17.

Jasper InfoTech, the parent company of Snapdeal, has been pumping in money into FreeCharge, having put in about '420 crore according to documents filed with the registrar of companies. Ltd, and Grofers have initiated talks for a merger that, if consummated, could also see SoftBank Group, an existing investor in the latter, participate in a $60-100 million funding round in the merged entity.

However, the company has been disp laced by cash-rich United States giant Amazon from the second spot and is now trailing way behind the two leaders.

Sources in the know of the goings-on said the final outcome of the due diligence being conducted by Paytm will determine the fate of Freecharge. It has given pink slips to a large number of employees and is keen to get out of the noncore businesses. Yet to be decided is compensation for founders Bah and Bansal.

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