Snapdeal To Merge With Alibaba, Paytm: Rumor
Snapdeal founders Kunal Bahl and Rohit Bansal recently announced 100 percent pay cuts and the company is also learned to have been undergoing job cuts process.
Based on the two information sources claim the e-commerce site paving ways to merge with Alibaba and Paytm.
Even though the top bosses are tight lipped, but fuel seems to have been added to fire with Wednesday’s letter of Bansal and Bahl’s to the employees.
If the merger claim turns to be true, it is logical step forward as no one wants to remain a distant third. Currently the Amazon and Flipkart in the Indian e-commerce market are way ahead.
In the letter Bahl wrote even though Snapdeal raised a lot of capital, but the company lost focus and both the founders are to be blamed.
Alibaba invested $500 million in August 2015 in Snapdeal in fund-raising process and now it is rumored the Chinese e-commerce company is in talks with other investee company Paytm and Snapdeal to emerge as a large e-commerce firm in India.
Alibaba may invest about Rs 1,700 crore to merge with Paytm.
Meanwhile, Paytm has segregated its marketplace business from wallet business and payments bank.
Industry experts believe three-way merger will be the best move for all the three companies.
CEO and chief analyst of Greyhound Research, Sanchit Vir Gogia, said three-way merger sounds best but lot depends on the structure and who will control the new company.