Flipkart-Snapdeal deal reportedly needs approvals from Azim Premji, Ratan Tata

SoftBank, Nexus Venture Partners and Kalaari Capital- the three major investors of Snapdeal may have given a green signal for the e-commerce portal's proposed sale to rival Flipkart, however, the agreement would still need a nod from  two of India’s most powerful businessmen- Azim Premji and Ratan Tata, says a Bloomberg report.

Apparently, a non-binding preliminary agreement between the three primary investors isn't enough and several other important investors are yet to sign on to the deal that includes Azim Premji, and Ratan Tata, the former chairman of the Tata Group.

"If due diligence goes smoothly, a term sheet specifying cash and stock for each shareholder will follow and a final agreement could be signed by mid to late June," Bloomberg quoted sources as saying.

As per the preliminary agreement, when the sale happens, Snapdeal's co-founders Kunal Bahl and Rohit Bansal will together receive about $30 million with a similar sum to be set aside for Snapdeal's nearly 2,000 employees. Kalaari Capital, one of the two early investors in the startup, is to get $30 million, while Nexus will receive twice that amount for its larger stake.

Apparently, there are still some small investors who haven't given their nod for the proposed sale which would be a crucial win for both SoftBank and Flipkart. The addition of Snapdeal would fortify Flipkart's ammunition against US etailer Amazon that boasts of a huge war-chest. "This is a landmark deal for Flipkart and for India," the company's co-founders Sachin Bansal and Binny Bansal said in a statement. "This deal reaffirms our resolve to hasten the transformation of commerce in India through technology.

Flipkart recently raised $1.4 billion from Tencent Holdings, Microsoft, and eBay, taking its valuation at $11.6 billion.