As per the recent rumours that Snapdeal is doing bad in terms of business & has been working on decreasing margins. Even there are words like Snapdeal not remitting sellers on time.
The indian online retail market might see the biggest merger between Flipkart & Snapdeal. As per TOI Japan’s Softbank may invest $1.5 billion in the merged firm which will be around 15% stake in total. Currently Softbank with 30% share in Snapdeal is the largest investor in Snapdeal with a value of $6.5 billion as of now
Flipkart which we know is the biggest entity in India but seeing a slow decrease due to Internationally funded Amazon. & on third position comes Snapdeal.
India has seen a lot of growth in ecommerce sector in the recent years but due to cut throat market competition. Companies have to offer deep discounts & which had made them run under huge losses. As we see Paytm is still providing a huge sum of discounts which again they are working out from the investments.
After the merger with Flipkart & Snapdeal they shall be competing directly with Amazon.
Softbank founder Mayoshi Son has given 3 options to snapdeal on seeing a decrease in revenue
- Merge with Flipkart
- Merge with Paytm backed by Alibaba
- or return the Softbanks investment in it.
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