Snapdeal decides to be on its own; No merger with Flipkart

By : |July 31, 2017 0

Snapdeal, run by Jasper Infotech Pvt. Ltd has finally decided to run as an independent identity, howsoever small, thus putting all reports about a merger with rival Flipkart to rest.

“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,” a Snapdeal spokesperson said in a statement.

“Snapdeal’s vision has always been to create life-changing experiences for millions of buyers and sellers across India. We have a new and compelling direction – Snapdeal 2.0 – that uniquely furthers this vision and have made significant progress towards the ability to execute this by achieving a gross profit this month. In addition, with the sale of certain non-core assets, Snapdeal is expected to be financially self-sustainable,” the spokesperson added.

Apparently, the new turn of events won’t affect SoftBank’s separate plans for an investment in Flipkart and it said it looks forward to the results of Snapdeal’s new plan. “Supporting entrepreneurs and their vision and aspirations is at the heart of Masayoshi Son’s and SoftBank’s investment philosophy. As such, we respect the decision to pursue an independent strategy. We look forward to the results of the Snapdeal 2.0 strategy, and to remaining invested in the vibrant Indian e-commerce space,” a Softbank spokesperson said in a separate statement.

Though last week there were reports that Snapdeal had agreed to Flipkart’s revised bid of up to $950 million for a takeover, however, the dissenting voices of the founders who were not keen on the sale since beginning became too loud to be overheard.

The latest development comes within days of Snapdeal agreeing to sell its digital payment platform, FreeCharge, to Axis Bank for Rs 385 crore which may have played a crucial role in boosting the morale of founders and stakeholders alike.

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