India: Infibeam to acquire Unicommerce from Snapdeal for up to $18m

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Listed e-commerce firm Infibeam Incorporation is acquiring Snapdeal‘s wholly owned subsidiary Unicommerce eSolutions Pvt Ltd, a cloud-based inventory management company, for up to Rs 120 crore ($18 million).

Under the terms of the deal, Unicommerce will become a wholly owned subsidiary of Infibeam once the acquisition is completed in three to five months.

Unicommerce is one of the few profitable SaaS companies in India providing comprehensive end-to-end e-commerce solutions, including warehouse management, multi-channel order fulfilment, e-commerce order processing, catalogue management, inventory management, and omnichannel management for both brands and online sellers.

“The line of business of the Target Company (Unicommerce) is similar to Infibeam Incorporation Limited. The acquisition would result in growth in merchants and revenues from Infibeam Web Services. With the acquisition of Unicommerce eSolutions, Infibeam will further expand and strengthen its e-commerce web service offerings and capabilities,” Ahmedabad-based Infibeam said in a filing to the stock exchanges.

In April 2015, Snapdeal had acquired Unicommerce in a cash-and-stock deal for an undisclosed amount. However, the once prolific e-tailer Snapdeal later ran into cash troubles, forcing it to pare its non-core assets, as has happened with Unicommerce.

Last year, Snapdeal sold its digital wallet FreeCharge to Axis Bank for $60 million. Subsequently, earlier this year, Jasper Infotech, the parent company of e-commerce firm Snapdeal, also agreed to sell logistics firm Vulcan Express to Future Supply Chain Solutions for Rs 35 crore ($5.5 million) in an all-cash deal.

Last year, Unicommerce had EBIDTA margins of 20-25 per cent in the first quarter (April-June 2017), becoming one of the very few startups in India to achieve full profitability. That announcement had coincided with Unicommerce co-founders Kapil Makhija and Ankit Khandelwal exiting the company. “As part of the sale transaction in April 2015, it was mutually agreed that we would continue to work at Unicommerce for another two years and steer the company to further growth. In August 2017, this period comes to a successful close and we are happy to note that Unicommerce has grown and become a dominant force in the e-commerce space,” the co-founders had said.

Infibeam Incorporation, which runs online marketplace Infibeam and BuildaBazaar, had last year entered into a pact to merge digital payments firm CCAvenue with itself.

Early last year, Infibeam acquired DRC Systems Pvt Ltd through its wholly owned subsidiary NSI Infinium Global Pvt Ltd, in an all-cash deal of around Rs 6 crore ($900,000).

Also Read:

Snapdeal-owned Unicommerce founders exit co

India: Snapdeal parent sells logistics arm Vulcan Express to Future Group for $5.5m

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.