Snapdeal set to buy ShopClues

Snapdeal is close to acquiring rival ShopClues-unidentified sources. The all-stock transaction is likely to give ShopClues' investors-including Singapore's GIC, Tiger Global and Nexus Venture Partners-10% of the combined entity, besides a small cash exit for founders Radhika Agarwal and Sanjay Sethi. A deal would bring together two big e-commerce firms in the long-tail category, which targets small-town buyers with products worth Rupees 500-1,000. ShopClues has seen its business shrink considerably in the past year while Snapdeal has cut costs, reduced headcount and divested holdings.

Branding Experts and Marketing experts Says: It's just a "STATISTIC", this is a Marriage of Convenience. There are no synergies to be derived out of this deal for Snapdeal in Operations or Tech or Delivery. Snapdeal would probably let ShopClues be like it is and fire a lot of ShopClues employees.

1.  Whats in it for SNAPDEAL: For 10% equity dilution, they get Tiger Capital, GIC, Unilazer & Helion on board-with a hope that there could be some funding coming in future from them. 
2. Whats in it for SHOPCLUES: 2 out of 3 Founders get an exit, some cash may be .One of them was forced out already & started Droom. Founders can live to fight another day 
3.  Whats in it for INVESTORS: Investors get to write off their investment in ShopClues and will get 10% in Snapdeal...