Flipkart-Snapdeal deal hits snag as investor Azim Premji objects to payouts for founders

Snapdeal

Premji has no objection to a $30-mn special payment for Snapdeal employees, reports Tech in Asia


Latest news : The family office of billionaire Azim Premji, one of the early investors in Snapdeal, has written to its board objecting to special payouts for the founders and two larger investors, Kalaari Capital and Nexus Venture Partners, as part of the buy-out deal with Flipkart. This puts a spanner in the works for India’s biggest e-commerce merger, reports Bloomberg citing anonymous sources familiar with the discussions.

Snapdeal founders Kunal Bahl and Binny Bansal along with Kalaari and Nexus had negotiated hard on compensation because Snapdeal’s proposed sale at a valuation of $1 billion is a fraction of its peak valuation of $6.5 billion. Kalaari and Nexus are set to receive $60 million in addition to equity in Flipkart, while the founders get a combined handout of $30 million, under the terms of the deal.

PremjiInvest is objecting to differential payments, as other investors are receiving no special compensation. It has no objection to another special payment – $30 million for Snapdeal employees.

Why it matters
The acquisition was a bailout for Snapdeal’s stakeholders and employees as the e-commerce company lost market share to Amazon and struggled to raise funding last year. If it doesn’t go through, it puts all of them in limbo as cash runs out.
Read this: Reliance Jio beats Huawei as most favoured 4G data card provider’.

Comments

Post a Comment

Popular posts from this blog

Tigor launched at Rs 4.7 lakh: Tata eyes a seat in Swift Dzire's market

Image
It comes in four variants in the price range of Rs 4.7 lakh to Rs 6.19 lakh Upping the ante in the crowded compact sedan category,  Tata Motors  on Wednesday launched Tata Tigor , its third product in the tax-efficient sub-four metre sedan segment. The biggest selling point for Tigor is its aggressive pricing. At Rs 4.7 lakh for the base petrol variant, Tigor is now the cheapest compact sedan in the country and even undercuts Tata’s existing models. For example, the largest-selling car in the segment - Swift Dzire - starts at Rs 5.27 lakh, while the base petrol version of Indigo CS, from the Tata stable, is priced at Rs 5.03 lakh. Besides Indigo CS, Tata Motors also sells the Zest in the segment, but has not been able to break the dominance of Maruti Suzuki’s Swift Dzire in the category. The compact sedan and hatchback category, accounted for over 40% of car sales in January 2017, at over 114,000 units. Maruti accounted for 56,000 cars in the category, with Swift D...
Read more

Xiaomi Redmi 4 goes on sale at 12 on Amazon: Here's all you need to know

Image
The Redmi 4 is a capable smartphone with a perfect screen size and resolution. Watch hands-on review Xiaomi's latest budget offering, the Xiaomi Redmi 4 , is going on sale at 12 noon on Tuesday, exclusively on Amazon India. In the first flash sale that took place on May 23, the smartphone had seen a huge interest from buyers and registered a record sales number of a whopping 250,000 units within the first eight minutes. According to Amazon.in, the Xiaomi Redmi 4 had recorded more than 10 million hits per minute on the site, after having received some 2.3 million ‘notify me’ alerts from customers since the launch announcement on May 16. Read this: Strike today: Chemists down shutters across India, protest e-platform plan The dual-sim budget smartphone with VoLTE capabilities is the latest offering from Xiaomi and offers an all-round performance. The Xiaomi Redmi 4 smartphone is available in three storage and RAM options – 16GB/2GB, 32GB/3GB and 64GB/4GB -- which ...
Read more

$500 bn Saudi mega-city to be listed alongside Aramco, says Crown Prince

Image
The 26,500-square km business and industrial zone, named NEOM, will extend into Jordan and Egypt LATEST NEWS :  The $500 billion mega-city planned by Saudi Arabia will be floated on financial markets alongside oil giant Saudi Aramco as part of the kingdom's drive to diversify away from oil, the crown prince told Reuters in an interview late on Wednesday. The 26,500-square km (10,230-square mile) business and industrial zone, named NEOM, will extend into Jordan and Egypt. It was unveiled on Tuesday at a three-day international investment conference. The surprise announcement is the latest - and most extraordinary - in a slate of privatisation programmes led by the floating of oil giant Saudi Aramco. The sales are designed to boost the Saudi economy and create jobs for millions of young people. "The first capitalist city in the world ... this is the unique thing that will be revolutionary," Crown Prince Mohammed bin Salman said. "Without a do...
Read more