It has been an interesting year for the E-commerce sector of India. Talk about Walmart buying out Flipkart, the new FDI E-commerce government policy or Zomato gold rolling out to increase customer base. However, what was more surprising that all of this was one e-commerce Platform, which now has a rising-from- the-ashes-story to show it’s zeal – Snapdeal!
Back with a bang..
Snapdeal, a platform that was, twenty months back, very close to selling its own business to Flipkart, is now back on track with its revival strategy brought in place by founder, Kunal Bahl. Alibaba group, SoftBank and Foxconn, the major investors in Snapdeal, are sure not feeling let down right now.
The fact that Snapdeal is back in the business and has made itself a cash positive company by using the simple technique of increasing orders and cutting down expenditure is the reason why it’s back on the market.
Shopclues dialed Snapdeal for the buyout?
However, now, it’s rival, ShopClues is rumored to be the one struggling. It is said that ShopClues sales have a hit a new low of 30000 orders/day and they plan to approach Snapdeal for a sale deal. The fact that the Singaporean investors like GIC and Tiger global who had invested $1.1 billion in the company in 2016, are growing impatient, just adds into the company distress.
Or, SnapDeal approached Shopclues for a sale deal?
There are another set of rumors that imply the same sale deal but go along the directions of Snapdeal offering to buy ShopClues upfront. This ignored any possibility of ShopClues facing financial troubles or their initiative to make the sale deal happen.
History has it!
Moreover, it must also be noted, ShopClues had tried to sell its operations to Snapdeal a year back but got denied due to Snapdeal’s not-so-good state at that time. So, it might not seem like a bad idea to initiate the deal again, especially when Snapdeal is back in the running.
This proposed deal depends on the number 3 of the Indian e-commerce, Snapdeal’s choice. It would not only impact Snapdeal’s operations but enlist new market entrants in the already extremely competitive Indian domestic E-commerce market.
All we can do it wait to see what unfolds, how it unfolds and what consequences it carries with it.