your password has been reset successfully, Please login again.

Snapdeal 2.0: A Shot to Revive

Despite the offers made by Flipkart within the 5 months period to acquire Snapdeal, Kunal Bahl presents Snapdeal 2.0 and decides to run the company independently.
BY BEx Bureau
BusinessEx
Aug 03, 2017

Kunal Bahl, co-founder of Snapdeal, wants to give another shot by initiating Snapdeal 2.0 process, after declining the merger offer of $900-950 million from Flipkart. Bahl was always hesitant against the forced merger with rival Flipkart. Now after a complete research of rivals business models, he believes that the open market model will be good for Snapdeals growth.

An early investor in Snapdeal, holding almost 12.20% stake in it comes out in support of the Snapdeal 2.0 decision. Nexus Venture Partners also has a seat on Snapdeals board that has representation from SoftBank, Kalaari Capital and the two founders Kunal Bahl and Rohit Bansal. After the announcement, Vani Kola, co-founder of Kalaari Capital criticised the move of not accepting the merger offer and initiating again on its own.

It is possible that the company will cut its workforce to half from the current 1,200 employees over the period of time. As the company is initiating on its own so it is necessary to cut costs as much as possible.

According to company sources, Snapdeal may trim its workforce by half from the current 1,200 employees over the next few months as it pursues an "independent" path post calling off a merger with bigger rival Flipkart.

SoftBank, the largest shareholder in Snapdeal and the one driving the merger discussions with Flipkart, has said it respected the decision to pursue an independent strategy. However, over the last few quarters, the SoftBank-funded company has seen its fortunes failing along with intense competition from US-based Amazon and homegrown player Flipkart.

Please add your Comment
SIMILAR News
May 25, 2018
The stock dropped 6.56 percent to settle at Rs 288.95 on BSE ...More
By Sanjana Surbhi
May 25, 2018
This was not the first time when Uber made profit quarterly ...More
By Sanjana Surbhi
May 25, 2018
Airtel Payments Bank was the first payments bank to start operations in India ...More
By Sanjana Surbhi
May 24, 2018
The expansion is a part of Transamerica deal with over 430 employees joining the company ...More
By Sanjana Surbhi
May 24, 2018
SoftBank had invested $2.5 billion in Flipkart last year ...More
By Sanjana Surbhi
May 23, 2018
The approval is subject to compliance of "certain modifications" ...More
By Sanjana Surbhi
May 22, 2018
It claims that Google unlawfully collected people's data by using iPhone's default setting ...More
By Sanjana Surbhi
May 22, 2018
IHS markit Ltd is a global information provider based in London, the UK planning to buy Ipreo to sup ...More
By Sanjana Surbhi
May 22, 2018
General Electronic will receive $2.9 billion in cash and 50.1 percent stake ...More
By Sanjana Surbhi
April 12, 2018
New Delhi-based startup Chariot has raised Rs.2 crore funding from GEMS Partners. ...More
By Ritu Marya
April 10, 2018
Yumlane's parent company QwikPik secures Rs.26 crore funding from RB Investments and its existing in ...More
By Ritu Marya
April 05, 2018
Digital lending startup Namaste Credit secures $3.8 million funding from Nexus Venture Partners. ...More
By Ritu Marya