Snapdeal’s proposed sale to Flipkart just got a step closer with Flipkart signing a non binding term-sheet for the merger today, according to a new report.

Flipkart will soon begin the due diligence process of what could be one of the largest deals in the Indian e-commerce sector, ET Now reports.

ET had earlier reported that the deal is estimated to about $750 million – $1 billion, a significant dip from Snapdeal’s peak valuation of $6.5 billion.

This move comes after Snapdeal’s largest investor SoftBank was able to secure consent for sale from early investors in the Delhi-based company like Kalaari Capital and Nexus Venture Partners following a series of negotiations. Kalaari Capital managing director Vani Kola, a long-standing board member of Snapdeal, had stepped down earlier this month.

ET had reported on May 12 that founders Kunal Bahl and Rohit Bansal are also relinquishing control of Snapdeal to Flipkart and receive a total of $30 million as cash payout. Both the founders are not expected to be a part of the merged entity in any capacity, sources had told ET at the time.

Two minority shareholders – Azim Premji and Tata are reportedly yet to give their nod to the acquisition, although they don’t have rights to block any potential transaction.

In a letter to the Snapdeal board, Premji Invest had sought details on plans for a potential merger or sale and also how the interests of minority shareholders will be protected in such a scenario, ET Now reported earlier today.

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