Could we see a new and improved Snapdeal from here on? Or will this mark the beginning of its end?
For over 6 months, there were negotiations taking place between Flipkart and Snapdeal for a merger but these were finally called off. The struggling e-commerce company Snapdeal has been looking for options to survive since quite a few months now but haven’t been able to find a solution.
Founders Kunal Bahl and Rohit Bansal announced yesterday that Snapdeal will indeed continue on an independent path and will not merge with Flipkart, ending what they termed as an ‘exhausting process‘ where the future of the company, investors and stakeholders was in doubt.
They termed this new Snapdeal venture as Snapdeal 2.0 and we at Read Scoops wonder what they have in store for us from here. It’s either make or break from here, to be honest. After this snub, Flipkart didn’t waste any time as they went and completed a takeover of Ebay.in and now Ebay India will officially be a Flipkart Group company.
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Snapdeal employees have been in doubt since March-April this year, not knowing their future at the company. Already having sacked 600 employees earlier this year, the company is now set to layoff up to 70-80-% of their employees, which will lead to a lot of people losing their jobs.
Earlier, they were promised a 3-month salary pay before getting laid off but now the employees are being told that they will only receive a 1-month severance pay before losing their jobs. Most employees see no point staying there now.
As a part of Snapdeal 2.0, the company will be approaching investment company Rakuten, as reports suggest. Rakuten is also the official sponsor of La Liga giants FC Barcelona and this may just be Snapdeal’s last roll of the dice to keep the company afloat.
Keep watching this space for the latest updates on this story!
