Indian online marketplace Snapdeal is in talks with domestic rivals Paytm and Flipkart for a potential sale, that could value the company at less than the total equity raised by parent Jasper Infotech Pvt. Ltd, according to three people aware of the development, claims Indian daily business newspaper Mint on Wednesday.
The news is not said to be a big surprise after a loss of 29.6 billion rupees (USD 14.93 million) last financial year to Snapdeal and laying off 600 of is employees.
However, Snapdeal Spokesperson denies any talks saying, “Your information is incorrect and without basis. We are making decisive progress in our journey towards profitability and all our efforts are aligned in this direction.”
Snapdeal is facing crises after a big loss last year which led to laying off 600 employees and Snapdeal founder’s letter to employees after laying off employees & 100% pay cut Announcement.
Recently Softbank also appoints Kabir Mishra to Snapdeal board and we also seen many changes in the top leadership recently including Snapdeal Appoints Jason Kothari as CEO of FreeCharge After the resignation of Govind Rajan.
We are yet to receive a comment from Flipkart and Paytm. SoftBank is expected to inject up to $50 million as bridge money till a deal is closed.
Snapdeal faced a massive compition from US e-commerce gaint AMAZON and Indian ecomerce Startup Flipkart and Paytm.
Snapdeal provides attractive Prices to its customers by providing heavy Discounts which creates uncertainity towards its profitalbility and also led to Big loss.