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Flipkart and Snapdeal merge to now face RBI and FEMA rules

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The acquisition of the e-commerce rivals Flipkart and Snapdeal has been in the news since March this year. Flipkart, valued at $11.6 billion in April, will be taking over the troubled e-commerce site Snapdeal to increase potential sales.

But the acquisition now faces another bump on the road as the deal will now have to face Reserve Bank of India rules on foreign exchange as the holding company Flipkart Pvt Ltd is domiciled in Singapore.

The $700 million to $1 billion acquisition now has to be specifically structured to protect the interest of Snapdeal shareholders while not violating Foreign Exchange Management Act (FEMA) rules. The proposed deal provides the Snapdeal shareholder Flipkart stock but will require special permission from RBI, otherwise, the transaction could be considered to be in violation of FEMA rules.

RBI has sought explanations from various pharma and manufacturing companies whose foreign subsidiaries have raised funds to invest in Indian firms. Similarly, they also question cross-border transactions with residents owning shares of an overseas company that also has a stake in an Indian company.

Snapdeal’s local shareholders include Ratan Tata and personal investment arm of Azim Premji, PremjiInvest. PremjiInvest has a 1.17% stake in Snapdeal with an investment of about Rs. 152 crore and shareholders not represented on the board own nearly 40% of the company. Assent from the minority stakeholders of Snapdeal will be required for their sale to Flipkart.

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Dunzo Gets Breather as NCLT Rejects Insolvency Petition from Invoice Discounters

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Dunzo

The National Company Law Tribunal (NCLT) Bengaluru bench has dismissed an insolvency plea filed against quick commerce startup Dunzo by its invoice discounters, declaring the petition “not maintainable” after several postponements. This decision offers temporary relief to Dunzo, which has been facing multiple insolvency petitions from various creditors, including Velvin Packaging Solutions and Betterplace Safety Solutions, over unpaid dues.

The invoice discounters alleged that Dunzo had paid only 50% of the required amounts, though the exact sum was not disclosed. Despite ongoing settlement talks, no resolution was reached, and the tribunal noted Dunzo’s delays in responding to creditor petitions. Dunzo continues to grapple with severe liquidity issues, delayed payments, and significant losses—reporting a ₹1,801.8 crore loss in FY23 and owing approximately ₹11.4 crore to major vendors like Google India and Facebook India.

While this NCLT ruling provides Dunzo some breathing room, the company still faces ongoing financial and operational challenges as it works to resolve its outstanding liabilities.

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How a Golden Retriever Became the Heart and Soul of a Hyderabad Startup’s Workplace

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Golden Retriever in workplace

Hyderabad-based startup Harvesting Robotics has won hearts online by appointing a golden retriever named Denver as its Chief Happiness Officer (CHO). Denver, introduced by co-founder Rahul Arepaka in a viral LinkedIn post, has quickly become the star of the office, spreading joy and boosting morale among employees. The company is now officially pet-friendly, a move Arepaka calls their “best decision.”

Denver’s new role has sparked widespread attention, with thousands liking and commenting on the announcement. Many see Denver’s presence as more than just a cute story—it highlights a growing trend of pet-friendly workplaces that prioritize employee well-being and happiness. As companies increasingly focus on holistic wellness, Denver’s appointment shows that sometimes, a wagging tail is the best way to brighten the workday.

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Info Edge Shareholders Approve ₹1,000 Crore Investment in New Venture Fund

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Info Edge

Info Edge (India) Ltd shareholders have overwhelmingly approved an investment of up to ₹1,000 crore in the company’s third venture capital fund, Info Edge Ventures Fund III. The proposal received near-unanimous backing, with 99.9995% of valid votes in favor out of 1,274 participants.

Smartweb Internet Services Ltd, a wholly owned Info Edge subsidiary, will act as sponsor and investment manager for the new fund. This move strengthens Info Edge’s commitment to backing early-stage startups and expanding its footprint in India’s venture capital landscape.

Info Edge has a strong track record as an early investor in leading Indian startups like Zomato and PB Fintech, with combined holdings in these firms valued at ₹31,500 crore ($3.7 billion) as of March 31, 2025.

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