Flipkart's Snapdeal acquisition still needs approvals from bigwigs

Bangalore

FLIPKART Online Services Pvt is nearing a final agreement to acquire rival e-commerce provider Snapdeal after winning support from the startup's three primary venture investors, but the contract still needs backing from two of India's most powerful businessmen, according to people familiar with the matter.

SoftBank Group Corp, the largest shareholder in Snapdeal, has pushed for the deal and ultimately persuaded Nexus Venture Partners to agree to terms, said the people, asking not to be named because the matter is private. Kalaari Capital and the founders had earlier agreed to the merger, which calls for Snapdeal's valuation to be reduced to about US$1 billion from its previous US$6.5 billion. The parties have reached a non-binding preliminary agreement that requires due diligence to be completed in a few weeks.