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Flipkart and Snapdeal Merger No More

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Flipkart and Snapdeal Merger No More,Flipkart Snapdeal Merger,snapdeal deal strategy,snapdeal founder,Ratan Tata,SoftBank,Startup Stories,2017 Latest Business News

The much talked about and hyped merger between the two home grown ecommerce rivals Flipkart and Snapdeal has been officially canceled. The Gurgaon based startup wants to pursue an ‘independent path’ and therefore will terminate all other strategic discussions, including the merger talks with Flipkart.

Termed as one of the biggest consolidation in the Indian ecommerce ecosystem, this merger has been the most talked about acquisition for the past five months with countless board meetings and multiple twists. A Snapdeal spokesperson in a statement said Snapdeal has been exploring various strategic options over the past several months and has finally decided to pursue an independent path. The spokesperson also added, Snapdeal has a new and compelling direction Snapdeal 2.0 and have made significant progress towards the ability to execute this by achieving a gross profit this month.

Both the majority shareholders of Flipkart and Snapdeal, Tiger Global and SoftBank had been pushing for this merger. SoftBank, which presently owns more than 47% of Snapdeal, would also invest in the merged entity and buy out one third of Tiger Global’s Flipkart shares. According to various reports, SoftBank might still invest in Flipkart and not continue its association with Snapdeal.

A spokesperson for Softbank said they will remain invested in the vibrant Indian ecommerce space and look forward to the results of the Snapdeal 2.0 strategy. They also added both Masayoshi Son’s and SoftBank’s investment philosophy has always been supporting entrepreneurs and their vision and aspirations. Therefore they respect Snapdeal’s decision to pursue an independent strategy.

Cofounders of Snapdeal Kunal Bahl and Rohit Bansal have been hesitant to merge with Flipkart since the very beginning, fighting SoftBank tooth and nail to prevent the deal. They have also been in talks with senior executives of various firms looking for alternative routes. Reports also mentioned the founders were also in talks with business to business major Infibeam, for a possible merger.

Flipkart’s revised termsheet also held various holdbacks and clauses as protection from all the decisions taken by the Snapdeal board that might have an effect on the company after the merger for a period of two years. The new clauses laid the blame of any wrongdoing on the Snapdeal shareholders and held back a part of the money for the first couple of years. Ratan Tata, Foxconn, Temasek and BlackRock had given their in principal approval for the merger. The approval of 26 other shareholders was required for the deal to go through.

Snapdeal found a little breathing space after the sale of its online digital payments platform FreeCharge to Axis Bank in a Rs. 385 crores all cash deal. The all cash sale provided Snapdeal with the ammunition necessary to remain independent for a couple of more years and retain their control over the online market space. Post the sale of FreeCharge Kunal Bahl, in an email to all employees, termed the acquisition a great outcome calling the second chance an opportunity of a lifetime they must seize. Snapdeal has also been looking to sell their logistic arm Vulcan Express.

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D2C Brand Neeman’s Raises $4 Million for Tier 2/3 Store Expansion & Eco-Friendly Shoes

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StartupStories

Hyderabad, January 13, 2026 Neeman’s, India’s leading D2C footwear brand famed for sustainable shoes and patented PIXLL® technology, has raised $4 million from existing investors. This funding boosts its cumulative capital past $10 million since 2015, with a post-money valuation nearing $50 million. CEO Vijay Chahoria emphasized offline retail as the “next frontier,” planning 50+ new stores in Tier 2/3 cities like Jaipur and Lucknow to blend eco-friendly innovation with hands-on customer experiences.

In India’s booming D2C ecosystem where footwear sales hit ₹1.2 lakh crore in 2025 Neeman’s targets hybrid retail amid high online CAC and 25-30% returns. Backed by vegan, machine-washable shoes priced ₹2,000-4,000, the brand leverages PIXLL® (5x more breathable than leather) for carbon-neutral comfort. Recent 5x revenue growth to ₹100 crore ARR, 1M+ pairs sold via Myntra and stores, and awards at India D2C Summit 2025 position it ahead of rivals like Paaduks.

Neeman’s offline expansion India eyes the $15B sustainable footwear market by 2028, fueled by PLI schemes, Gen Z’s 70% eco-preference (Nielsen), and Southeast Asia exports. Challenges like real estate costs are offset by data-driven inventory and omnichannel QR tech. Watch for Q1 2026 launches in Hyderabad and Bengaluru redefining D2C success through authentic, “Wear the Change” branding.

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Centre Mulls Revoking X’s Safe Harbour Over Grok Misuse

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Grok - StartupStories

The Centre is weighing the option of revoking X’s safe harbour status in India after its AI chatbot Grok was allegedly misused to generate and circulate obscene and sexually explicit content, including material seemingly involving minors. The IT Ministry has already issued a notice to X, directing the platform to remove unlawful content, fix Grok’s safeguards, act against violators, and submit a detailed compliance report within a tight deadline. If the government finds X’s response inadequate, it could argue that the platform has failed to meet due‑diligence standards under Indian law, opening the door to harsher action.​

Under Section 79 of the IT Act, safe harbour protects intermediaries like X from being held directly liable for user‑generated content, provided they follow due‑diligence rules and promptly act on legal takedown orders. Revoking this protection would mean X and its officers could be exposed to criminal and civil liability for obscene, unlawful, or harmful content that remains on the platform, including AI‑generated images from Grok. This prospect significantly raises X’s compliance risk in India and could force tighter moderation, stricter AI controls, and more aggressive removal of flagged posts.​

The Grok episode also spotlights the regulatory grey zone around generative AI, where tools can create harmful content at scale even without traditional user uploads. Policymakers are increasingly questioning whether AI outputs should still enjoy the same intermediary protections as conventional user posts, especially when they involve women and children. How the government ultimately proceeds against X over Grok misuse could set a precedent for AI accountability, platform responsibility, and safe harbour interpretation in India’s fast‑evolving digital ecosystem.

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How Pronto Is Redefining 10-Minute Home Services in India with a $25 Million Fundraise

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Startup Stories

Home services startup Pronto is in advanced talks to raise about $25 million at a near-$100 million valuation, underscoring strong investor confidence in India’s fast-growing 10-minute home services market. This potential round would be the company’s third major funding milestone after its $2 million seed and $11 million Series A in 2025, backed by marquee investors such as General Catalyst, Glade Brook Capital, Bain Capital and new participant Epiq Capital. The fresh capital is expected to further strengthen Pronto’s positioning as a leading tech-led household help platform for urban consumers.​

Pronto operates a 10-minute on-demand home-services platform that connects users with trained, background-verified workers for everyday tasks like sweeping, mopping, utensil cleaning, laundry and basic cooking. Using a hub-and-spoke, shift-based model, the startup stations workers at hyperlocal hubs, enabling sub-10-minute fulfilment and more predictable earnings compared to the informal domestic-help market. Founded in 2024 by Anjali Sardana and based in Delhi NCR, Pronto has already expanded from Gurugram into major cities such as New Delhi, Mumbai, Bengaluru and Pune, and is handling around 6,000 daily bookings with nearly 1,300 active professionals as of December 2025.​

The upcoming $25 million fundraise is expected to be used to enter more metros, deepen presence in existing neighbourhoods with additional hubs and upgrade Pronto’s technology for smarter routing, shift planning and real-time operations. A significant portion of the capital will also go into training, retention and benefits for its workforce to maintain consistent service quality at scale, especially as competition heats up from rivals like Snabbit and Urban Company in the rapid home services space. This near-$100 million valuation not only validates Pronto’s model but also highlights a broader shift toward organised, tech-driven domestic-help solutions in India’s largely informal home-services market.​

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