CCI approves acquisition of Solv India by Jumbotail

The Competition Commission of India on Tuesday cleared a multi-layered deal involving Bengaluru-based Jumbotail Technologies' proposed acquisition of B2B e-commerce platform Solv.

The deal includes Jumbotail fully acquiring SCRTIPL, a subsidiary of Standard Chartered that runs Solv. In March, SC Ventures, Standard Chartered’s investment arm, agreed to sell Solv India to Jumbotail.

A recent report by Financial Express said that the acquisition had faced delays after an audit revealed related-party transactions that inflated Solv’s revenue. These concerns were flagged by Jumbotail during the audit process.

As part of the deal, Jumbotail will issue certain shares to SC Ventures and Solv India, while SCV Master and Artal Asia will subscribe to specific shares in Jumbotail.

The combined entity will be led by S. Karthik Venkateswaran and Ashish Jhina, co-founders of Jumbotail. Gautam Jain will join Jumbotail’s board, representing SC Ventures.

Jumbotail operates an online marketplace that facilitates wholesale product distribution and offers a range of ancillary services for sellers and buyers. Solv, meanwhile, supports the diverse commerce and fintech needs of India’s small retailers (kiranas) and micro, small, and medium enterprises (MSMEs).

The acquisition will bolster Jumbotail’s capabilities across the entire food and grocery value chain, while integrating Solv India’s strengths in apparel, home furnishings, footwear, and toys.

According to a Moneycontrol report, Jumbotail is in the advanced stages of securing $120 million in funding from SC Ventures, Invus, and other investors, which would value the company at $1 billion and position it as the latest unicorn in the B2B e-commerce sector.