Snapdeal ends merger talks with Flipkart; to go solo

Agencies
July 31, 2017

New Delhi, Jul 31: Snapdeal today called off the USD 950 million-takeover (over Rs 6,000 crore) by Flipkart, apparently over differences in valuation and terms of what could possibly have been the largest deal in the Indian e-commerce space.

Discussions to acquire the beleagured Snapdeal by Flipkart were initiated in March but contours of the deal could not reach a finality even after several rounds.

"Snapdeal has been exploring strategic options over the last several months. The company has now decided to pursue an independent path and is terminating all strategic discussions as a result," a Snapdeal spokesperson said in a statement, without naming Flipkart.

The spokesperson added that the company will now pursue "Snapdeal 2.0" which is expected to help Snapdeal be "financially self-sustainable".

Japanese conglomerate SoftBank, which holds close to 35 per cent stake in Snapdeal and one that was driving the discussions, said it supports entrepreneurs and their vision.

"...we respect the decision to pursue an independent strategy. We look forward to the results of the Snapdeal 2.0 strategy, and to remaining invested in the vibrant Indian e- commerce space," a SoftBank spokesperson said.

According to company sources, the talks ended on account of the complexity of the deal that came with multiple conditions, right from indemnity to a non-compete clause.

These did not find favour with the founders of the Gurugram-based online marketplace, they added. The sources did not wish to be named as the discussions were private.

The deal was also contingent upon a nod from Snapdeal's high-profile minority investors, including Ratan Tata and Azim Premji's investment arm, PremjiInvest.

It wasn't immediately clear if any of the minority shareholders had objected to the deal. Once a leading player in the Indian e-commerce space, Snapdeal has seen its fortunes falling amid strong competition from rivals, Amazon and Flipkart.

Its valuation plunged from a peak of about USD 6.5 billion in February 2016 to about USD 1 billion during the latest round of discussions. India's nascent e-commerce sector is witnessing an intense battle for leadership between US-based Amazon and homegrown firm, Flipkart as more Indians turn to online shopping.

The players have been pumping in millions of dollars in building infrastructure, getting sellers online as well as promotions to bring more shoppers onboard.

The decision to continue independently also comes within days of Snapdeal agreeing to sell its digital payment platform, FreeCharge, to Axis Bank for Rs 385 crore.

One of the sources said Snapdeal is now pivoting into a 'Taobao'-like open marketplace setup and with money coming in from the sale of non-core assets like Freecharge and Vulcan (when it gets completed), the company will have a run time of at a few years. Snapdeal has about 1,200 employees.

In an e-mail to employees last week, Bahl had indicated that the company may decide to continue independently. Bahl had said the Freecharge deal would give Snapdeal the "necessary boost in resources" to continue its e-commerce journey.

The discussions with Flipkart stretched over five months for a number of reasons. SoftBank worked overtime to get early investors, Kalaari and Nexus Venture Partners -- who also have Board representation -- to agree to the deal.

After their approval, Snapdeal Board turned down Flipkart's USD 800-850 million (about Rs 5,500 crore) offer, saying the amount undervalued the company.

While Flipkart revised the offer to USD 900-950 million, it came with a number of riders that did not find favour with the company.

There have been reports suggesting that SoftBank was looking at picking up stake in Flipkart through the Snapdeal transaction.

With the deal now off, reports say SoftBank may look at investing in Flipkart separately, though it could not be independently verified.

Greyhound Research chief analyst and CEO Sanchit Vir Gogia said Snapdeal 2.0 will need the company to have a different approach to survive and thrive.

"They will have to take a specialised approach to ensure they can continue. The market is now clearly open to a third player after Amazon and Flipkart, possibly to Paytm," he said.

Gogia also noted that the development should also be a reminder to startups that "they should not take consumers and investors for granted". "Valuation alone doesn't help keep a business alive," he said.

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News Network
April 9,2025

Mangaluru: A routine midnight tea run turned into a horrifying tragedy when a motorcycle carrying three young men — in clear violation of traffic rules — slammed into an open divider on National Highway 66 at SKS Junction in the early hours of April 8. Two of them lost their lives, while the third is recovering from injuries.

The victims have been identified as Sankeerth, who was riding the motorcycle (KL-58-Q-6381), and Dhanurved C, the first pillion rider. Sibi Sam, the second pillion rider, was injured but survived the crash.

According to the FIR registered at the Traffic East Police Station (Crime No. 48/2025), the friends had set out from Lohith Nagar around 2:30 am, heading towards Pumpwell for tea. While Rohan Joby and Meghnath rode separately on a different bike (KL-13-AH-2388), Sankeerth was accompanied by two pillion riders — a clear case of triple riding, which is both illegal and dangerous.

As they sped along NH-66, Sankeerth reportedly lost control near SKS Junction and collided with the edge of an open road divider at approximately 2:50 am. The impact threw all three men onto the highway with violent force.

Sankeerth and Dhanurved suffered critical head and facial injuries and died while being rushed to the hospital. Sibi Sam is undergoing treatment for his injuries.

The FIR invokes Sections 281, 125(a), 106(1) of the Bharatiya Nyaya Sanhita, and 128(a) read with 177 of the Motor Vehicles Act, which include provisions related to rash driving and traffic violations.

The police have launched a full investigation. The accident has reignited public concern about reckless driving, triple riding, and the hazards posed by poorly maintained road dividers, especially during low-visibility hours.

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Agencies
April 6,2025

waqfbill.jpg

New Delhi, Apr 6: President Droupadi Murmu on Saturday gave her assent to the Waqf (Amendment) Bill, 2025, which was passed by Parliament earlier this week.

Murmu also gave her assent to the Mussalman Wakf (Repeal) Bill, 2025.

"The following Act of Parliament received the assent of the president on April 5, 2025, and is hereby published for general information: The Waqf (Amendment) Act, 2025," the government said in a notification.

Parliament early on Friday approved the Bill after the Rajya Sabha gave its nod to the contentious legislation following an over 13-hour debate.

The discussion witnessed staunch objections from opposition parties, which termed the Bill "anti-Muslim" as well as "unconstitutional", while the government responded that the "historic reform" would benefit the minority community.

The Bill was passed in the Rajya Sabha with 128 members voting in favour and 95 opposing it.

It was passed in the Lok Sabha early on Thursday, with 288 members supporting it and 232 against it.

Parliament had also approved the Mussalman Wakf (Repeal) Bill, with the Rajya Sabha giving its nod. The Lok Sabha had already given its assent to the Bill.

After the president gave her assent, it has also become a law.

Congress MP Mohammad Jawed and All India Majlis-e-Ittehadul Muslimeen (AIMIM) president Asaduddin Owaisi on Friday challenged the validity of the Waqf (Amendment) Bill in the Supreme Court, saying it violated constitutional provisions. 

Jawed's plea alleged the Bill imposed "arbitrary restrictions" on Waqf properties and their management, undermining the religious autonomy of the Muslim community.
The petition, filed through advocate Anas Tanwir, said it discriminated against the Muslim community by "imposing restrictions that are not present in the governance of other religious endowments".

Jawed, the Lok Sabha MP from Kishanganj in Bihar, was a member of the Joint Parliamentary Committee on the Bill and alleged in his plea that it "introduces restrictions on the creation of Waqfs based on the duration of one's religious practice".

In his separate plea, Owaisi said the Bill took away from Waqfs various protections accorded to Waqfs and Hindu, Jain and Sikh religious and charitable endowments alike.

Owaisi's plea, filed by advocate Lzafeer Ahmad, said, "This diminishing of the protection given to Waqfs while retaining them for religious and charitable endowments of other religions constitutes hostile discrimination against Muslims and is violative of articles 14 and 15 of the Constitution, which prohibit discrimination on the grounds of religion."

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News Network
April 7,2025

rafahcity.jpg

Rafah, a city along the border of the Gaza Strip and Egypt, has entirely been “wiped off the map” by Israel’s brutal campaign of genocide and ethnic cleansing, says the Gaza government media office.

The media office said Sunday in a statement on X that the southern city of Gaza has entirely been demolished to make way for Israel to turn it into a “closed military operations zone."

The statement said Israel’s military forces have been carrying out “horrific massacres against defenseless civilians” in Rafah, creating a “full-fledged humanitarian disaster.”

According to the officials, Israeli forces have destroyed over 90% of homes—more than 20,000 buildings in Rafah.

All of the historical buildings, archaeological sites, museums, modern homes, the civilian infrastructure, the shops, cafes, restaurants, hospitals, schools, and universities have been demolished.

The officials said the regime's forces have also demolished 22 of 24 water wells, including a large water treatment plant and facility that was built 25 years ago by the Canadian government.

“Tens of thousands of families” are now without safe drinking water, and over 85% of the sewage system has been destroyed, raising fears of disease outbreaks, said the statement.

At least 12 medical centers are out of service, including Abu Yousef al-Najjar Hospital, which was reportedly blown up by an explosive robot.

Rafah is “uninhabitable,” now, the media office said.

The Israeli military’s goal, it said, is to “empty the land of its people and alter its geographic and demographic features.”

Rafah, a city that was built over 3,300 years ago, had a population of 171,889. As recently as February, 1.4 million Palestinians took shelter there as a result of Israel’s forced displacement of the population in northern parts of the besieged enclave.

The city, which was once designated as a "safe zone" by Israel's military, has now been reduced to rubble. The regime's military has now seized the ruins of Rafah and ordered every survivor out, to expand its "security buffer zone" along Gaza's borders.

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