According to the reports Japanese giant SoftBank is negotiating, likely to invest between the biggest online merger of snapdeal and flipkart from the considerable persons it has been defined that this merger could result in the most prominent profitable outcomes in the ecommerce segment which will expand this market and provide best of all services.

By picking up primary and secondary shares Softbank is investing in the merged entity up to $1.5 billion, as it is the largest investor in Snapdeal, which was valued at $6.5 billion in early 2016, giving  around 15% in the merger. The deal may include a $1 billion share sale by Flipkart’s largest investor.

If the secondary deal goes through between the tiger global and flipkart as  10% stake Tiger Global is expected to sell in Flipkart, which probably ensure that Tiger recoups the entire capital it has ploughed into Flipkart, and still leave it with a stake of about 20% in the company. SoftBank is learnt to have drawn up three options for Snapdeal- merge with Flipkart, combine with Alibaba-led Paytm, or a writedown of SoftBank’s investment to zero.

As a familiar person said “SoftBank and Flipkart have agreed on the broad contours of the deal. If these terms stay on track, it’s likely that the talks will culminate into a definitive transaction by late April,”

Since february the discussion is going which has picked up in the past fortnight as the founder of softbank Masayoshi Son getting directly involved. Domestic players like Flipkart are duking it out with Amazon, which has readied a multi-billion dollar war chest for the country, while China’s Alibaba has put its weight behind Paytm’s e-commerce business.

According to the sources it was founded that if the SoftBank transaction goes through it may raise up to $2.5 billion in the Bengaluru-based entity Flipkart which is being valued at $10-11 billion in its latest financing round.

Another spokesperson decodes that “Flipkart is not keen on taking more than $1 billion in new funds as it would tantamount to heavy dilution. That leaves SoftBank with the option of picking up secondary shares from Tiger to increase its ownership in the combined entity,”

30% ownership in Flipkart is because of the Tiger’s partial secondary sale to SoftBank will come as a relief for its legendary fund manager Lee Fixel,with this other e-tailers were also included. The Tiger’s share sale, can result in the largest liquidity event for any risk investor in the domestic consumer internet economy.

Recouping of the investments in flipkart by 7the softbank and tiger will rejuvenate an investor interest in the long-term potential of the Indian internet ecosystem, though there is a tough competition in this segment global giants like Amazon. In a management reorganisation starting last year, it was embedded that both the founders of flipkart, Sachin bansal and Binny Bansal, stepped out of operational roles at the e-commerce firm.It got boosted in January this year when Kalyan Krishnamurthy, an ex-MD at the fund, took over as CEO of Flipkart, with the objective of turning around the company.

Moreover if we put some light on the snapdeal it was founded that The company had 500-600 employees across and the founder of snapdeal kunal bahl admitted to making mistake in growing much before it could figure out right economic model. Earliest of this month, announcement was made that they would shut down its consumer to consumer marketplace Shopo. the company will reorganise into “a lean, focused and entrepreneurial one” by combining teams, reducing layers, eliminating non-core projects and strengthening focus on profitable growth.

Snapdeal, which faces intense competition from Amazon and Flipkart, had last reported an employee strength of 8,000.

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