Snapdeal pursues personnel through handsome profits

In an attempt to pacify its employees who are taken aback by news of shortage of revenue, Indian e-commerce retailer Snapdeal’s founders have reached out personally via meetings and mails promising profit and dismissing any news of takeover talk.

Analogous to other fellow in ecommerce business in India, Snapdeal is also involved in investing a huge part of cash in offering a huge discount and rebate in order to align their customers for a relentless online marketing platform. Unfortunately it is just crunching the numbers that’s why investors and their representatives are asking for focusing on its foremost concern and stakes.

One of the insider revealed that several townhalls has been organized in a week with the involvement of founders of the company, Rohit Bansal and Kunal Bahl that delivers words of motivation. Someone from the employees said that company has keen concerns for benefits and productivity with the takeover objective. The thriving online retail sector in India is driven by Flipkart then followed by Amazon after overwhelming of Snapdeal’s sales in last year.

Amazon has gained an increasing number of eminent capitalists in India which is making up with its vigorous fall in China. There it has been crushed out by antagonistic group of rivals that were rather leading in meeting the expectations of local demands. Snapdeal was looking for venture capitals from Chinese investors and Alibaba Group of Holding Ltd. Unexpectedly it has failed in procuring these funds. It is also looking for desirable revenue within two years while keeping an eye on market listing. In any case, the China mishap, and a valuation that has dropped from a pinnacle of $6.5 billion a year ago is responsible for unsettlement among some staff.

A couple of employees confirmed the internal unsettlement regarding company’s future action and over the rift in views of the investors where some seek profit while others are looking for growth and cut down of few senior employees. A few representatives express worries regarding layoff of 600 staffs from Snapdeal to Vulcan Express and installments unit FreeCharge which is its logistic unit. Irrespective of commenting on staff sentiment or exit, Snapdeal reveals that its yearly evaluations are in progress and staff would be offered attractive impetuses.

Bahl, cofounder and chief executive, said in his letter to employees that Snapdeal is progressing on the righteous path despite of some difference in its investor’s words. Since there are some disputes that happening among board of directors of Snapdeals. He also wrote in the letter that, “Investors in our industry need to understand that driving indiscriminate growth at any cost doesn’t create long-term value”.

Yes, it is true that none of the relevant persons (Alibaba Group including investors: Softbank, Nexus, and Kalaari) are uttering a single word on this matter. Still, Snapdeal deals with several losses, it has been observed that it lost Rs 29.6 billion in last fiscal year whereas Flipkart unit and its online marketplace together dealt with a loss of Rs 28.5 Billion at same time.

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