Flipkart planned acquisition of rival Indian e-commerce company Snapdeal may get in jeopardy as a smaller investor in Snapdeal, PremjiInvest, objects to special payments to its 2 co-founders, 2 early backers.
One of the smaller investors in Snapdeal, the family office of billionaire Azim Premji, objects to special payments to certain shareholders including its two co-founders and two early backers, according to people familiar with the discussions.
Flipkart had earlier told Snapdeal that it wants all the startup’s investors to agree to deal terms as a precondition of the transaction, said the people, who asked not to be identified discussing information that’s not public.
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.
Flipkart and Snapdeal had signed a non-binding term sheet in the last week of May, after which Flipkart started its due diligence on Snapdeal, and the deal will most likely come through in the first week of July, according to a senior Snapdeal official.