Founders of Indian online marketplace Snapdeal and one of its early investors, Nexus, have reached an agreement with SoftBank that would allow the Japanese firm to move ahead with its plan to sell Snapdeal to bigger rival Flipkart, ET Now reported, citing sources.

Nexus and Snapdeal founders have agreed to the terms of payment with SoftBank wherein Snapdeal founders would get $15 million each and Nexus would get $50 million to $60 million, the business channel said.

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Sources: Nexus, Snapdeal founders reach agreement with Softbank. <a href="https://twitter.com/hashtag/ETNOWExclusive?src=hash">#ETNOWExclusive</a>
&mdash; ET NOW (@ETNOWlive) <a href="https://twitter.com/ETNOWlive/status/862582569317085185">May 11, 2017</a></blockquote>
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Sources: Snapdeal founders to get $15 mn each pre-tax, Nexus to get $50-60 mn. <a href="https://twitter.com/hashtag/ETNOWExclusive?src=hash">#ETNOWExclusive</a>
&mdash; ET NOW (@ETNOWlive) <a href="https://twitter.com/ETNOWlive/status/862582749147926528">May 11, 2017</a></blockquote>
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Flipkart is expected to sign the term sheet and start due diligence of Snapdeal, ET Now added.

Snapdeal and SoftBank were not immediately reachable for comment, while Nexus declined to comment.

Sources told Reuters last week that SoftBank is working to engineer a sale of Snapdeal to Flipkart, as it seeks to play consolidator and take a more active role at a trio of leading start-ups in India.

(Reuters)

Snapdeal founders would get $15 million each and Nexus would get $50 million to $60 million

Founders of Indian online marketplace Snapdeal and one of its early investors, Nexus, have reached an agreement with SoftBank that would allow the Japanese firm to move ahead with its plan to sell Snapdeal to bigger rival Flipkart, ET Now reported, citing sources. Nexus and Snapdeal founders have agreed to the terms of payment with SoftBank wherein Snapdeal founders would get $15 million each and Nexus would get $50 million to $60 million, the business channel said. Sources: Nexus, Snapdeal founders reach agreement with Softbank. #ETNOWExclusive — ET NOW (@ETNOWlive) May 11, 2017 × Sources: Snapdeal founders to get $15 mn each pre-tax, Nexus to get $50-60 mn. #ETNOWExclusive — ET NOW (@ETNOWlive) May 11, 2017 × Flipkart is expected to sign the term sheet and start due diligence of Snapdeal, ET Now added. Snapdeal and SoftBank were not immediately reachable for comment, while Nexus declined to comment. Sources told Reuters last week that SoftBank is working to engineer a sale of Snapdeal to Flipkart, as it seeks to play consolidator and take a more active role at a trio of leading start-ups in India. (Reuters)

Snapdeal, Nexus reach deal with SoftBank for sale to Flipkart: Report

After ploughing about $2 billion into minority stakes in Indian e-commerce businesses over the past few years, Japan&#39;s SoftBank is upping the stakes, looking to play consolidator and take a more active role at a trio of leading startups.

According to sources with direct knowledge of the matter, the solar-to-tech conglomerate is seeking to secure a piece of India&#39;s industry leaders in everything from payment systems to online shopping and groceries, in a series of deals that would shake up the $65 billion sector.

Among the most high-profile plans is SoftBank&#39;s push to engineer a merger between Snapdeal, the No. 3 player in one of the world&#39;s most competitive online markets and one of its biggest Indian investments to date, and market leader Flipkart.

The deal could be finalised as soon as next week, one of the sources said.

SoftBank has poured roughly $1 billion into Snapdeal since 2014, but competition in e-commerce has risen dramatically with US&nbsp;giant Amazon cranking up its presence and taking the No. 2 spot from Snapdeal.

Besides Snapdeal, SoftBank is also close to finalising a cash infusion of more than $1 billion into Alibaba-backed digital payments firm Paytm - another leader in a highly competitive sector - giving it a more direct say in that group too, according to one source familiar with discussions.

Media reports have separately linked SoftBank to a tie-up between grocery delivery group Grofers, in which it has invested roughly $70 million, and market leader and rival BigBasket.

SoftBank, Snapdeal, Paytm and BigBasket did not respond to requests for comment. A spokesman for Grofers said the company did not comment on merger speculation.

Land of opporunity

At the heart of the push is the charismatic Masayoshi Son, SoftBank&#39;s founder and chairman, the sources said. Son has taken a more active role in the group globally since last year, when he pushed aside his heir apparent, Nikesh Arora.

SoftBank is best-known for its hugely lucrative early stage bet in Chinese e-commerce giant Alibaba Group, in which it is still the single largest investor. But it has also been a long-time supporter of India - and with some success.

&quot;Son is thinking India is the place where he will create one or two Alibabas,&quot; said one of the sources familiar with SoftBank ambitions, adding Son sees the country right now as the &quot;land of golden opportunity&quot;.

SoftBank is the biggest investor in India&#39;s leading ride-share player Ola, which competes with Uber, and its top hotel aggregator Oyo. Son and other partners have also pledged to pour $20 billion into solar projects in the energy-hungry South Asian nation.

&quot;They are getting into sectors where the big differentiator, firstly, is going to be technology, of course,&quot; said the same source.

&quot;Secondly, also sectors that need large amounts of capital, so you can browbeat or elbow out people with your capital.&quot;

A Flipkart-Snapdeal combination would create just such a e-commerce behemoth. Flipkart, though battling Amazon, has maintained its pole position and last month it raised $1.4 billion from a trio of cash-rich and tech savvy players that include eBay, Tencent and Microsoft. It also bought eBay&#39;s Indian operations as part of the deal.

Meanwhile, SoftBank poured cash into Snapdeal, but Son began to lose patience as it was outpaced by Amazon, said a source at Snapdeal and the source familiar with SoftBank&#39;s aspirations. SoftBank has already begun talks with Flipkart&#39;s largest investor, Tiger Global, to buy a stake, the two sources said.

To push through the tie-up, SoftBank was likely to invest about $1 billion in Flipkart, both via a direct cash infusion and by buying equity stakes in investors such as Tiger Global, another source said, adding that Snapdeal investors were expected to get one Flipkart share for every 10 Snapdeal shares.

Flipkart did not respond to requests for comment, while a spokeswoman for Tiger Global said the hedge fund did not speak to the media about its investments.

Further consolidation

Forging all these deals could prove to be a challenge. One source familiar with the Grofers-BigBasket talks said a deal, while being considered, looked unlikely as BigBasket has a cash-burn rate significantly higher than that of Grofers, making it hard to justify a deal.

Moreover, even if the deals do click, there is no guarantee bets like a Flipkart-Snapdeal combine will pay off. &quot;In the short-term, yes,&quot; said Gartner analyst Sandy Shen. &quot;But things move quickly in e-commerce and Amazon is a strong player with global scale, technology and operational expertise.&quot; Still, a Flipkart-Snapdeal combine is likely to revive hopes of a broader consolidation in Indian e-commerce.

Alibaba had explored the possibility of combining Snapdeal and Paytm&#39;s e-commerce business with Flipkart about a year ago, one of the sources said, but talks broke down over price.

Industry watchers believe that Paytm&#39;s marketplace and Tiger Global-backed ShopClues could eventually fold into Flipkart if the tie-up and Paytm investment goes through.

(Reuters)

SoftBank has poured roughly $1 billion into Snapdeal since 2014

After ploughing about $2 billion into minority stakes in Indian e-commerce businesses over the past few years, Japan's SoftBank is upping the stakes, looking to play consolidator and take a more active role at a trio of leading startups. According to sources with direct knowledge of the matter, the solar-to-tech conglomerate is seeking to secure a piece of India's industry leaders in everything from payment systems to online shopping and groceries, in a series of deals that would shake up the $65 billion sector. Among the most high-profile plans is SoftBank's push to engineer a merger between Snapdeal, the No. 3 player in one of the world's most competitive online markets and one of its biggest Indian investments to date, and market leader Flipkart. The deal could be finalised as soon as next week, one of the sources said. SoftBank has poured roughly $1 billion into Snapdeal since 2014, but competition in e-commerce has risen dramatically with US giant Amazon cranking up its presence and taking the No. 2 spot from Snapdeal. Besides Snapdeal, SoftBank is also close to finalising a cash infusion of more than $1 billion into Alibaba-backed digital payments firm Paytm - another leader in a highly competitive sector - giving it a more direct say in that group too, according to one source familiar with discussions. Media reports have separately linked SoftBank to a tie-up between grocery delivery group Grofers, in which it has invested roughly $70 million, and market leader and rival BigBasket. SoftBank, Snapdeal, Paytm and BigBasket did not respond to requests for comment. A spokesman for Grofers said the company did not comment on merger speculation. Land of opporunity At the heart of the push is the charismatic Masayoshi Son, SoftBank's founder and chairman, the sources said. Son has taken a more active role in the group globally since last year, when he pushed aside his heir apparent, Nikesh Arora. SoftBank is best-known for its hugely lucrative early stage bet in Chinese e-commerce giant Alibaba Group, in which it is still the single largest investor. But it has also been a long-time supporter of India - and with some success. "Son is thinking India is the place where he will create one or two Alibabas," said one of the sources familiar with SoftBank ambitions, adding Son sees the country right now as the "land of golden opportunity". SoftBank is the biggest investor in India's leading ride-share player Ola, which competes with Uber, and its top hotel aggregator Oyo. Son and other partners have also pledged to pour $20 billion into solar projects in the energy-hungry South Asian nation. "They are getting into sectors where the big differentiator, firstly, is going to be technology, of course," said the same source. "Secondly, also sectors that need large amounts of capital, so you can browbeat or elbow out people with your capital." A Flipkart-Snapdeal combination would create just such a e-commerce behemoth. Flipkart, though battling Amazon, has maintained its pole position and last month it raised $1.4 billion from a trio of cash-rich and tech savvy players that include eBay, Tencent and Microsoft. It also bought eBay's Indian operations as part of the deal. Meanwhile, SoftBank poured cash into Snapdeal, but Son began to lose patience as it was outpaced by Amazon, said a source at Snapdeal and the source familiar with SoftBank's aspirations. SoftBank has already begun talks with Flipkart's largest investor, Tiger Global, to buy a stake, the two sources said. To push through the tie-up, SoftBank was likely to invest about $1 billion in Flipkart, both via a direct cash infusion and by buying equity stakes in investors such as Tiger Global, another source said, adding that Snapdeal investors were expected to get one Flipkart share for every 10 Snapdeal shares. Flipkart did not respond to requests for comment, while a spokeswoman for Tiger Global said the hedge fund did not speak to the media about its investments. Further consolidation Forging all these deals could prove to be a challenge. One source familiar with the Grofers-BigBasket talks said a deal, while being considered, looked unlikely as BigBasket has a cash-burn rate significantly higher than that of Grofers, making it hard to justify a deal. Moreover, even if the deals do click, there is no guarantee bets like a Flipkart-Snapdeal combine will pay off. "In the short-term, yes," said Gartner analyst Sandy Shen. "But things move quickly in e-commerce and Amazon is a strong player with global scale, technology and operational expertise." Still, a Flipkart-Snapdeal combine is likely to revive hopes of a broader consolidation in Indian e-commerce. Alibaba had explored the possibility of combining Snapdeal and Paytm's e-commerce business with Flipkart about a year ago, one of the sources said, but talks broke down over price. Industry watchers believe that Paytm's marketplace and Tiger Global-backed ShopClues could eventually fold into Flipkart if the tie-up and Paytm investment goes through. (Reuters)

How Japan's SoftBank is powering India's e-commerce

In what goes to on be a new development in India&rsquo;s e-commerce space, online grocery delivery service BigBasket and smaller rival Grofers India have begun talks on a possible merger, Indian newspaper Mint reported on Wednesday, citing sources.

If the merger goes through, SoftBank Group, which is an existing investor in Grofers, will participate in a $60 million to $100 million funding round in the merged company, the report added.

The talks, which are in early stages, may value BigBasket at about $700 million to $800 million, while Grofers could be valued at $150 million to $200 million, Mint added.

Online grocery sales are a fast growing segment in India&#39;s e-commerce industry as more consumers log in to internet for their purchases.

India&rsquo;s burgeoning online retail market appears to be undergoing a transition phase. Recently, e-commerce firm Flipkart raised $1.4 billion in its biggest fundraising to date. Chinese social media and entertainment firm Tencent Holdings, the world&#39;s biggest software company Microsoft and online marketplace eBay participated in the funding round, and this would go on to value Flipkart at $11.6 billion.

Amazon, on the other hand, last year had said it would invest over $5 billion in India. It recently expanded into online video and grocery shopping, seeking to expand aggressively in a country where a rising middle class is increasingly shopping online.

Besides, electronics payments provider Paytm is also in talks with Japan&#39;s SoftBank Group to raise $1.2-$1.5 billion in cash, making the latter one of the largest shareholders in the fintech start-up, reported Mint newspaper.

The deal, which could increase Paytm&#39;s valuation to $7 billion to $9 billion, will see SoftBank buying some shares from existing Paytm investor SAIF Partners and founder Vijay Shekhar Sharma beside investing money in the company, the report said.&nbsp; Paytm may also buy Snapdeal-owned payments rival Freecharge, as part of the deal, added the report.

(WION)

India?s burgeoning online retail market appears to be undergoing a transition phase.

In what goes to on be a new development in India’s e-commerce space, online grocery delivery service BigBasket and smaller rival Grofers India have begun talks on a possible merger, Indian newspaper Mint reported on Wednesday, citing sources. If the merger goes through, SoftBank Group, which is an existing investor in Grofers, will participate in a $60 million to $100 million funding round in the merged company, the report added. The talks, which are in early stages, may value BigBasket at about $700 million to $800 million, while Grofers could be valued at $150 million to $200 million, Mint added. Online grocery sales are a fast growing segment in India's e-commerce industry as more consumers log in to internet for their purchases. India’s burgeoning online retail market appears to be undergoing a transition phase. Recently, e-commerce firm Flipkart raised $1.4 billion in its biggest fundraising to date. Chinese social media and entertainment firm Tencent Holdings, the world's biggest software company Microsoft and online marketplace eBay participated in the funding round, and this would go on to value Flipkart at $11.6 billion. Amazon, on the other hand, last year had said it would invest over $5 billion in India. It recently expanded into online video and grocery shopping, seeking to expand aggressively in a country where a rising middle class is increasingly shopping online. Besides, electronics payments provider Paytm is also in talks with Japan's SoftBank Group to raise $1.2-$1.5 billion in cash, making the latter one of the largest shareholders in the fintech start-up, reported Mint newspaper. The deal, which could increase Paytm's valuation to $7 billion to $9 billion, will see SoftBank buying some shares from existing Paytm investor SAIF Partners and founder Vijay Shekhar Sharma beside investing money in the company, the report said. Paytm may also buy Snapdeal-owned payments rival Freecharge, as part of the deal, added the report. (WION)

BigBasket, Grofers may merge; Is India?s online market undergoing a major shift?

India&#39;s top e-commerce firm Flipkart has raised $1.4 billion from Tencent Holdings, Microsoft and eBay, the company said in a statement on Monday. Flipkart will have a valuation of $11.6 billion after the latest funding round, which was its biggest ever, the statement added.

The latest funding round from the three global technology giants, at a post-transaction valuation of $11.6 billion, adds to an existing group of investors that include Tiger Global Management, Naspers Group, Accel Partners and DST Global.

&quot;We have chosen these partners based on their long histories of pioneering industries, and the unique expertise and insights each of them bring to Flipkart. This deal reaffirms our resolve to hasten the transformation of commerce in India through technology,&rdquo; said Flipkart.

<blockquote class="twitter-tweet" data-lang="en">
Proud to announce the largest investment in <a href="https://twitter.com/Flipkart">@Flipkart</a> history ! <a href="https://t.co/ktwy39H3WW">https://t.co/ktwy39H3WW</a> <a href="https://twitter.com/TencentCorp">@TencentCorp</a> <a href="https://twitter.com/eBay">@eBay</a> <a href="https://twitter.com/Microsoft">@Microsoft</a> <a href="https://twitter.com/hashtag/FlipkartBigWin?src=hash">#FlipkartBigWin</a>
&mdash; binnybansal (@binnybansal) <a href="https://twitter.com/binnybansal/status/851364335268057088">April 10, 2017</a></blockquote>
<script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script>

The news comes amid strong but unconfirmed speculation that Flipkart is looking at a potential takeover of smaller rival Snapdeal.

As part of the fundraising, eBay invested $500 million in Flipkart for a stake. In exchange, the two companies will merge their operations in India and Flipkart will own and operate eBay&#39;s business in the South Asian country when the deal closes later this year.

&quot;The investment by eBay is accompanied by a strategic commercial agreement with Flipkart. In exchange for an equity stake in Flipkart, eBay is making a cash investment in and selling its eBay.in business to Flipkart. eBay.in will continue to operate as an independent entity as a part of Flipkart,&quot; stated Flipkart.

<blockquote class="twitter-tweet" data-lang="en">
Welcome <a href="https://twitter.com/ebayindia">@ebayindia</a> to the <a href="https://twitter.com/Flipkart">@Flipkart</a> family! More power to e-comm in India! <a href="https://t.co/ktwy39H3WW">https://t.co/ktwy39H3WW</a> <a href="https://twitter.com/eBay">@eBay</a> <a href="https://twitter.com/hashtag/FlipkartBigWin?src=hash">#FlipkartBigWin</a>
&mdash; binnybansal (@binnybansal) <a href="https://twitter.com/binnybansal/status/851364440805187585">April 10, 2017</a></blockquote>
<script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script>

EBay said in a separate statement it did not expect the deal to have any &quot;material impact&quot; on its guidance provided in January.

(WION with inputs from Reuters)

The news comes amid strong but unconfirmed speculation that Flipkart is looking at a potential takeover of smaller rival Snapdeal

India's top e-commerce firm Flipkart has raised $1.4 billion from Tencent Holdings, Microsoft and eBay, the company said in a statement on Monday. Flipkart will have a valuation of $11.6 billion after the latest funding round, which was its biggest ever, the statement added. The latest funding round from the three global technology giants, at a post-transaction valuation of $11.6 billion, adds to an existing group of investors that include Tiger Global Management, Naspers Group, Accel Partners and DST Global. "We have chosen these partners based on their long histories of pioneering industries, and the unique expertise and insights each of them bring to Flipkart. This deal reaffirms our resolve to hasten the transformation of commerce in India through technology,” said Flipkart. Proud to announce the largest investment in @Flipkart history ! https://t.co/ktwy39H3WW @TencentCorp @eBay @Microsoft #FlipkartBigWin — binnybansal (@binnybansal) April 10, 2017 The news comes amid strong but unconfirmed speculation that Flipkart is looking at a potential takeover of smaller rival Snapdeal. As part of the fundraising, eBay invested $500 million in Flipkart for a stake. In exchange, the two companies will merge their operations in India and Flipkart will own and operate eBay's business in the South Asian country when the deal closes later this year. "The investment by eBay is accompanied by a strategic commercial agreement with Flipkart. In exchange for an equity stake in Flipkart, eBay is making a cash investment in and selling its eBay.in business to Flipkart. eBay.in will continue to operate as an independent entity as a part of Flipkart," stated Flipkart. Welcome @ebayindia to the @Flipkart family! More power to e-comm in India! https://t.co/ktwy39H3WW @eBay #FlipkartBigWin — binnybansal (@binnybansal) April 10, 2017 EBay said in a separate statement it did not expect the deal to have any "material impact" on its guidance provided in January. (WION with inputs from Reuters)

Flipkart raises $1.4 billion from eBay, Microsoft, Tencent; acquires eBay India

India e-commerce major <a href="https://www.flipkart.com/apple-iphone-6-space-grey-16-gb/p/itme8dvfeuxxbm4r?pid=MOBEYHZ2YAXZMF2J&amp;srno=s_1_1&amp;otracker=search&amp;lid=LSTMOBEYHZ2YAXZMF2JEVWVNC&amp;qH=c5986779727a5087">Flipkart is offering a discount of up to Rs 22,000</a> on the 16 GB iPhone 6 model, which is priced at Rs 31,990, under an exchange program. This means that you can get a new iPhone 6 for as low as Rs 10,000.

The deal looks tempting and many of you wouldn&rsquo;t mind trading in your old phone to get a brand new iPhone 6 for Rs 10K, but hold on.&nbsp; Because chances that you would get a discount of Rs 22,000 on your phone is very less.

We checked the list of devices on Flipkart to ascertain what all models are eligible for such a huge discount under the exchange program. And to our surprise it&rsquo;s only the iPhone 6s Plus that can be exchanged for a discount of Rs 22,000. But why would one trade in a high-end model for an old one? In fact, the scuccessor to the iPhone 6 - iPhone 6s - can get you an exchange discount of Rs 17,840.

Surprisingly, no Samsung phone is eligible for a discount of Rs 22,000. Talking about other successful flagship models, OnePlus 3 owners can exchange their phones for a discount of Rs 11,000 and the Google Nexus 6P users for Rs 10,190.

Therefore, it&#39;s not a deal, but a gimmick. The move comes across as Flipkart&#39;s desperate attempt to draw people&rsquo;s attention.

(WION)

It looks like a deal, but it's not a deal. Here's why

India e-commerce major Flipkart is offering a discount of up to Rs 22,000 on the 16 GB iPhone 6 model, which is priced at Rs 31,990, under an exchange program. This means that you can get a new iPhone 6 for as low as Rs 10,000. The deal looks tempting and many of you wouldn’t mind trading in your old phone to get a brand new iPhone 6 for Rs 10K, but hold on. Because chances that you would get a discount of Rs 22,000 on your phone is very less. We checked the list of devices on Flipkart to ascertain what all models are eligible for such a huge discount under the exchange program. And to our surprise it’s only the iPhone 6s Plus that can be exchanged for a discount of Rs 22,000. But why would one trade in a high-end model for an old one? In fact, the scuccessor to the iPhone 6 - iPhone 6s - can get you an exchange discount of Rs 17,840. Surprisingly, no Samsung phone is eligible for a discount of Rs 22,000. Talking about other successful flagship models, OnePlus 3 owners can exchange their phones for a discount of Rs 11,000 and the Google Nexus 6P users for Rs 10,190. Therefore, it's not a deal, but a gimmick. The move comes across as Flipkart's desperate attempt to draw people’s attention. (WION)

iPhone 6 for Rs 10K on Flipkart is nothing but a gimmick

India&#39;s top e-commerce player Flipkart plans to move into the groceries space and make a renewed push in the online furniture business, as it expands its product portfolio and looks to outmaneuver global giant Amazon.com in a burgeoning Indian market.

Flipkart Chief Executive Binny Bansal said the home-grown e-commerce player plans to begin experimenting with grocery sales next year and scale up operations over a three year period.

&quot;There&#39;s definitely room to build a profitable grocery business, but it&#39;s hard. That doesn&#39;t mean it&#39;s not possible, but it&#39;s hard,&quot; Bansal told Reuters in an interview on Sunday.

Amazon has already began to pilot grocery sales in select Indian cities.

More and more people in India, a country of over 1.2 billion people, are logging on to the internet to buy everything ranging from clothes to smartphones, making its e-commerce market one of the world&#39;s fastest growing.

Bank of America Merrill Lynch sees the value of goods sold online in India jumping tenfold to $188 billion by 2025. 
Bansal said fashion will remain Flipkart&#39;s best selling category for the next few years, but he sees online groceries as having the potential to grow as big as fashion and electronics in the next six to eight years.

Earlier in 2016, Flipkart-owned fashion portal Myntra bought rival Jabong for $70 million to create India&#39;s largest online fashion retailer.

Furniture potential

Bansal said Flipkart is also eyeing making deeper inroads in the online furniture space.

Indian websites such as Urban Ladder and Pepperfry have just begun to fuel the demand for online furniture sales in India, a country where many still prefer traditional carpenters and local stores.

Flipkart currently sells furniture but plans to relaunch the store in about three to four months and add more variety. 
&quot;You will see more furniture in three-four months,&quot; he said.

&quot;We&#39;re ramping up our selection and experience as well. We are basically building capabilities for furniture,&quot; Bansal said, adding Flipkart aims to provide furniture assembly services that are key to making headway in this segment.

IPO plans

Flipkart would consider going public in two to four years, Bansal said, adding the company could consider listing in India or overseas.

He said Flipkart, which is backed by Tiger Global Management and Accel Partners among others, has cash reserves to last up to three years and that the company looks to raise money when the funds are available rather then when they are needed most.

&quot;What that strategy means is that we are constantly talking to investors and partners who are interested in investing.&quot; 
Reuters reported in September that Wal-Mart Stores was in talks to buy a minority stake in Flipkart.

(Reuters)

Flipkart plans to begin experimenting with grocery sales next year and scale up operations over a three year period

India's top e-commerce player Flipkart plans to move into the groceries space and make a renewed push in the online furniture business, as it expands its product portfolio and looks to outmaneuver global giant Amazon.com in a burgeoning Indian market. Flipkart Chief Executive Binny Bansal said the home-grown e-commerce player plans to begin experimenting with grocery sales next year and scale up operations over a three year period. "There's definitely room to build a profitable grocery business, but it's hard. That doesn't mean it's not possible, but it's hard," Bansal told Reuters in an interview on Sunday. Amazon has already began to pilot grocery sales in select Indian cities. More and more people in India, a country of over 1.2 billion people, are logging on to the internet to buy everything ranging from clothes to smartphones, making its e-commerce market one of the world's fastest growing. Bank of America Merrill Lynch sees the value of goods sold online in India jumping tenfold to $188 billion by 2025. Bansal said fashion will remain Flipkart's best selling category for the next few years, but he sees online groceries as having the potential to grow as big as fashion and electronics in the next six to eight years. Earlier in 2016, Flipkart-owned fashion portal Myntra bought rival Jabong for $70 million to create India's largest online fashion retailer. Furniture potential Bansal said Flipkart is also eyeing making deeper inroads in the online furniture space. Indian websites such as Urban Ladder and Pepperfry have just begun to fuel the demand for online furniture sales in India, a country where many still prefer traditional carpenters and local stores. Flipkart currently sells furniture but plans to relaunch the store in about three to four months and add more variety. "You will see more furniture in three-four months," he said. "We're ramping up our selection and experience as well. We are basically building capabilities for furniture," Bansal said, adding Flipkart aims to provide furniture assembly services that are key to making headway in this segment. IPO plans Flipkart would consider going public in two to four years, Bansal said, adding the company could consider listing in India or overseas. He said Flipkart, which is backed by Tiger Global Management and Accel Partners among others, has cash reserves to last up to three years and that the company looks to raise money when the funds are available rather then when they are needed most. "What that strategy means is that we are constantly talking to investors and partners who are interested in investing." Reuters reported in September that Wal-Mart Stores was in talks to buy a minority stake in Flipkart. (Reuters)

Flipkart plans to foray into online grocery space

India&#39;s biggest e-commerce firm Flipkart is buying domestic online fashion retailer Jabong from Global Fashion Group for $70 million in cash, the latest consolidation move in the country&#39;s e-commerce sector as competition intensifies. 
 
Flipkart unit Myntra, India&#39;s largest online fashion retailer which is buying Jabong, said today that the two sites will have a combined base of 15 million monthly active users. Global Fashion Group is backed by Germany&#39;s Rocket Internet and Sweden&#39;s Kinnevik. 
 
Niche e-commerce players in India are facing greater competition from both domestic rivals and the likes of Amazon.com Inc, at a time when industry valuations have begun to cool. 
 
Rocket Internet had flagged earlier this year that business was tough in India, warranting more investment by Global Fashion Group. 
 
The deal puts Myntra, which itself was bought by Flipkart for about $300 million last year, in a stronger position to take on Flipkart&#39;s biggest local rival Snapdeal and Amazon, which has pledged to invest over $5 billion in India to boost market share in the country. 
 
Amazon&#39;s huge bet and tough competition have already prompted some small local players to consolidate. Privately held Indian conglomerate Future Group, which owns a string of fashion and retail assets, earlier in 2016 bought online furniture retailer FabFurnish.com. 
 
The e-commerce fashion retail space in India has especially been attracting investment from not only established names such as Flipkart, Snapdeal and Amazon, but also from newer entrants like Reliance Industries - India&#39;s largest company, which outlined plans to roll out an e-commerce website in April. 
 
India&#39;s e-commerce market is seen as having potential though, with annual sales of $36.7 billion expected by 2020, consultants KPMG said in report in November. 
 
The Myntra and Jabong sites will exclusively offer international brands. 
 
(Reuters)

The deal puts Myntra in a stronger position to take on their biggest local rival Snapdeal and Amazon

India's biggest e-commerce firm Flipkart is buying domestic online fashion retailer Jabong from Global Fashion Group for $70 million in cash, the latest consolidation move in the country's e-commerce sector as competition intensifies. Flipkart unit Myntra, India's largest online fashion retailer which is buying Jabong, said today that the two sites will have a combined base of 15 million monthly active users. Global Fashion Group is backed by Germany's Rocket Internet and Sweden's Kinnevik. Niche e-commerce players in India are facing greater competition from both domestic rivals and the likes of Amazon.com Inc, at a time when industry valuations have begun to cool. Rocket Internet had flagged earlier this year that business was tough in India, warranting more investment by Global Fashion Group. The deal puts Myntra, which itself was bought by Flipkart for about $300 million last year, in a stronger position to take on Flipkart's biggest local rival Snapdeal and Amazon, which has pledged to invest over $5 billion in India to boost market share in the country. Amazon's huge bet and tough competition have already prompted some small local players to consolidate. Privately held Indian conglomerate Future Group, which owns a string of fashion and retail assets, earlier in 2016 bought online furniture retailer FabFurnish.com. The e-commerce fashion retail space in India has especially been attracting investment from not only established names such as Flipkart, Snapdeal and Amazon, but also from newer entrants like Reliance Industries - India's largest company, which outlined plans to roll out an e-commerce website in April. India's e-commerce market is seen as having potential though, with annual sales of $36.7 billion expected by 2020, consultants KPMG said in report in November. The Myntra and Jabong sites will exclusively offer international brands. (Reuters)

Flipkart's Myntra acquires Jabong for $70 million in cash

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