“This is not true, we are not acquiring or merging with Solv,” Jumbotail cofounder and CEO Karthik Venkateswaran told Inc42 in late December 2024, when Inc42 reached out for a comment based on market speculations.

Exactly three months later, Jumbotail announced it would be acquiring Standard Chartered-backed Solv. In a joint statement, the companies said, “SC Ventures – Standard Chartered’s innovation, fintech investment and ventures arm, has agreed to the acquisition of its incubated venture, Solv India, by Jumbotail, one of India’s leading B2B marketplaces.”

Just to give some context, SC Ventures incorporated Solv India in 2019 to give a shot at organising the $500 Bn primarily unorganised grocery industry in India.

As per sources, SC Ventures which primarily owns 90% of the stake in Solv India will be selling its entire stake to Jumbotail for around $40 Mn – $50 Mn in a mix of cash and equity deal. Besides, SC Ventures will also infuse additional capital into Jumbotail and acquire around 30% stake.

As per a MoneyControl report, once the acquisition is concluded, Jumbotail will raise around $120 Mn at nearly a unicorn valuation (~$900 Mn) from SC Ventures and other investors.

On the face of it, it looks like a transaction that would give SC Ventures a piece of the larger combined entity. But when we look at Solv India and its past year, there are a lot of questions that spring up.

• Firstly, why is Solv India going for an acquisition, when just four months ago, its former CEO Amit Bansal said it is preparing for an IPO at the end of 2026?
• Why was CEO Amit Bansal removed before the deal with Jumbotail was finalised?
• Why would SC Ventures need to infuse capital in the combined entity if it just wanted to offload Solv?
• More importantly, how did the combination of Jumbotail and Solv result in a valuation of $900 Mn (almost a unicorn) when the combined valuation of both companies was just under $600 Mn?
• Finally, what happens to employees at Solv India — Inc42 sources allege that around 70%-80% of the workforce will be laid off.

Inc42 reached out to Solv India, SC Ventures, and Jumbotail for answers on these points, but they declined to respond to our queries.

While both Solv India and Jumbotail await approval with respect to the acquisition from the Competition Commission of India, let’s look beyond the neatly drafted press release and analyse this deal.

Breaking Down The Jumbotail-Solv Deal

To make sense of the deal, we have to understand the complex structure of Solv India first. Solv India’s registered name is Standard Chartered Research & Technology, and it was incorporated in 2019 with SC Ventures being the lead shareholder.

SC Ventures owned around 91% of the startup and the rest was owned by Japan’s SBI Holdings. Together, they have infused around $130 Mn in Solv across multiple rounds.

As per sources and as mentioned in the CCI summary reviewed by Inc42, the deal is a part share swap and part cash deal. While Jumbotail will acquire 100% stake in Solv India entity, in return Jumbotail will allot some shares to SC Ventures and give an exit to SBI Holdings. As per sources, SC Ventures will also infuse around $60 Mn in funding in Jumbotail.

This deal will result in SC Ventures’ operating member Gautam Jain getting a board seat in Jumbotail. It is pertinent to note that Jain was also a board member at Solv India earlier.

Post the acquisition, Jumbotail’s cofounders Karthik Venkateswaran and Anish Jhina will continue to operate the entire business.

But before we look at what’s next, it’s important to understand what changed at Solv. Not long ago, the company’s former CEO Amit Bansal had said it was on track for an IPO by 2026. So, what pushed Solv from chasing the public markets to getting acquired?

Solv India: From IPO Plans To A Sale

© Inc42