The talks of merger between Flipkart and Snapdeal scaled another hurdle after Japanese investor SoftBank completed the buyout of Kalaari Capital’s stake in Snapdeal.

 The deal, which has been in works for last few months, was stuck due to disagreement among stakeholders over final settlement for the company's earliest investors namely Kalaari Capital and Nexus Venture Partners.


 The ecommerce players have signed a non-binding term sheet for the merger. Flipkart and Snapdeal now expect to complete merger in three months’ time.

 The merger is expected to take place through a share swap and SoftBank is likely to get upto two board seats in merged entity. Flipkart will retain 'Snapdeal' brand for the interim and the merged entity will fall under the 'Flipkart' brand.

 The merger is valued at USD 950 million to USD 1 billion. Flipkart is likely to have given job assurance to Snapdeal employees when the merger realises.

 Retail bigwig Kishore Biyani of Future Group termed the deal as “death of a company” than a merger. “Snapdeal-Flipkart deal shows that in this environment no-one will survive,” he added.