E-commerce portal Snapdeal's co-founders Kunal Bahl and Rohit Bansal have written an e-mail to their employees to give them assurance of job security amid escalated talks of a potential sale to Flipkart.
E-commerce portal Snapdeal's co-founders Kunal Bahl and Rohit Bansal have written an e-mail to their employees to give them assurance of job security amid escalated talks of a potential sale to Flipkart.
The sale, propelled by Snapdeal's largest investor - Snapdeal - will create the largest e-commerce company within the country, and will pose as formidable competition to Amazon India.
According to a reports , the e-mail said, "There has been a lot of media reporting and speculation around Snapdeal recently.While our investors are driving discussions about the way forward, I am reaching out to let you know that the well being of the entire team is mine and Rohit's top priority. We will do all that we can, and more, in working with out investors to ensure there is no disruption in employment and that there are positive professional as well as financial outcomes for the team as the way forward becomes clearer..." Snapdeal CEO Kunal Bahl said in the e-mail.
In the e-mail, Bahl said, "Given the incredible progress we have made around our profitability journey as a company, the overall increments this year are higher than those offered last year."
While media reports suggest that Snapdeal's investor Softbank is in the talks with Flipkart, with an announcement likely in the next 4-8 weeks, a PTI report said the Alibaba-backed Paytm was also in the fray as a potential buyer.
Snapdeal was valued at $6.5 billion in its last funding round in February 2016. The valuation has also shrunk since then and the potential deal could be struck at a discounted rate.
The cash-strapped firm, over the last few months, has had to trim its workforce significantly and shut down non-core businesses. Earlier this year, Snapdeal laid off about 600 people.
Indian e-commerce companies have seen funding dry up over the last few months as investors are focussing extensively on profitability and rationalisation of expenses. With intense competition from deep-pocketed global rivals like Amazon, companies like Flipkart and Snapdeal could face more heat in the coming days.
(With inputs from PTI)
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