Flipkart and Snapdeal merger, which was supposed to be the biggest of its kind merger in Indian e-commerce sector, is now officially called-off. According to media reports, Snapdeal has confirmed the news and is planning to go ahead with its 2.0 strategy, as per which the company would go entirely independent. Snapdeal spokesperson shared with media.”
Snapdeal spokesperson shared with media, ”Snapdeal has been exploring strategic options over the past several months. The company has now decided to pursue an independent path and is terminating all strategic discussions as a result. Snapdeal’s vision has always been to create life-changing experiences for millions of buyers and sellers across India.”
More on the development, Softbank will invest in Flipkart and discontinue its association with Snapdeal, as reported. Earlier, Snapdeal was in talks for selling its business to Flipkart in a $900-950 million deal.
A source close to Snapdeal Board shared in media that Flipkart had put forth a set of demands in front of the Snapdeal board that was making them as well as the shareholders of the organization uncomfortable and leading to delay further.
The primary cause for merger fallout, reportedly, is excessive demands put forth by Flipkart to the Snapdeal board.
Amidst all this, another shocking news revealed by Snapdeal that it will undergo major layoff with cut down of almost 80% staff of its company. In July last year, the company had over 9,000 employees. However, the management cut down the talent pool down to 1200, without any notice.