Snapdeal close to acquiring ShopClues

The deal is likely to see ShopClues investors get one Snapdeal share if the merger goes through in this planned structure, and will likely give them a 10% stake in the combined entity.

If the deal materializes, it will herald a big consolidation move in the long-tail ecommerce market, which has largely catered to small town customers, away from the core audience of established ecommerce companies Amazon and Flipkart.

Products sold on long-tail marketplaces are low-priced, typically in Rs 500 to Rs 1,000 range.