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Complexity of deal derailed Flipkart-Snapdeal talks: Sources

Invest Now. Portfolio Loading Drag according to your convenience. ET NOW. Pinterest Reddit. Last month, Snapdeal called off the USD million- merger over Rs 6, crore discussions with larger rival, Flipkart.

'Snapdeal 2.0' could leave company with 500-600 staffers

Snapdeal-Flipkart merger talks hit a dead end for a variety of reasons, including the complex structure of the deal that would have placed millions of dollars worth of tax liability on many of Snapdeal 's investors, according to sources. Last month, Snapdeal called off the USD million- merger over Rs 6, crore discussions with a larger rival, Flipkart.


  • SnapDeal: Infibeam, Snapdeal terminate Unicommerce deal - The Economic Times.
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  • SnapDeal: 'Snapdeal ' could leave company with staffers - The Economic Times.
  • While Snapdeal had stated that it would follow an independent path and was, therefore, terminating all strategic talks, sources had said differences in valuation and terms of the deal had led to the fallout after five months of negotiations. Two people close to the negotiations said the share swap between Snapdeal domiciled in India and Flipkart registered in Singapore would have led to an extremely inefficient taxation structure due to restrictions arising out of laws in India, causing millions of dollars of tax burden to multiple investors.

    Pinterest Reddit. Snapdeal may trim its workforce to half from the current 1, employees over the next few months as it pursues an "independent" path post calling off merger with bigger rival Flipkart , according to company sources. After turning down Flipkart's USD million offer earlier this week, the e-commerce firm has started working on its new roadmap which it calls 'Snapdeal 2.

    Snapdeal will trim its operations and over the next months, the workforce could be pared to about people, two people familiar with the company's plans said.

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    They did not wish to be identified as they are not authorised to speak on the matter. Snapdeal did not respond to emailed queries. Snapdeal is estimated to have about 1, staffers currently. Over the past few months, the beleaguered company has seen a steady exit of employees across levels. One of the persons said there could be a higher level of attrition in the coming days. Many employees were waiting for the Flipkart deal and see if things would turn around, the person said adding that now that the deal has been called off, these staffers may look at other opportunities.

    Once inspired by China's Alibaba model, Snapdeal is now said to be moving to a 'Taobao' model with a consumer-to- consumer e-commerce marketplace. The company had started operations as a deals and coupons platform and pivoted to a marketplace model around However, over the last few quarters, the SoftBank-funded company has seen its fortunes failing amid intense competition from US-based Amazon and homegrown player Flipkart.

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    Snapdeal Jobs in Janakpuri, Delhi, Delhi - February | mail.maier.de

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