Snapdeal, the Indian e-commerce company, is planning to acquire Shopclues, an Indian etailer. The talks are still underway as both the companies have not announced anything, anonymous sources told the international daily news, Bloomberg Quint.
The Gurugram-based company, Shopclues has been grappling in the industry since August and in turn, was unable to raise funds. In FY17-18, the etailers revenue leapt upward by 46 per cent alongside, reduced losses by 40 per cent. Further, the company slashed down its expenses over operations and reduced its employees benefit to INR 111 crore, as reported by the Indian daily news, The Economic Times.
Owing to the cut-throat competition prevailing in the e-commerce sector, the small etailer, Shopclues is opting for an exit and reached Snapdeal to buy out the firm, said aforementioned anonymous sources.
Even, Snapdeal, following a failed amalgamation with Flipkart, is now looking for small acquits ions. By acquiring smaller players, Snapdeal will be strengthening its foot in the sector.
If the business deal with Snapdeal and Shopclues finalizes then there will be money involved in the acquisition. More so, the current investors of the etailer, Shopclues will have a share in the new amalgamated entity, apprised the aforementioned sources.