Beleaguered online marketplace Snapdeal has called off talks for its merger withrival Flipkart , India's biggest e-commerce player. The Gurgaon-based Snapdeal said, it wants to pursue an independent path of Snapdeal 2.0
"Snapdeal has been exploring strategic options over the last 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, without naming Flipkart. Snapdeal was in talks for selling its business to Flipkart in an estimated $900-950 million deal.
The working is based on the fact that Snapdeal will be shelling of its non-core businesses to focus on financially self-sustainability. Sale of Freecharge to Axis Bank provided the much needed cash for its operations and working
"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," the company said in the statement.
Japan's Softbank, the largest investor in Snapdeal said that it respects the company's 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. The Japanese conglomerate said supporting entrepreneurs and their vision is at the heart of SoftBank Chairman and CEO (chief executive officer) Masayoshi Son's and the company's investment philosophy.
The deal otherwise would have marked the biggest acquisition in the Indian E-Commerce sector, having lost its rank amidst the battle between US giant Amazon and Flipkart, Snapdeal hopes to revive itself to the market cap it used to earlier have.