Snapdeal has called off merger talks with Flipkart after almost six months of discussions and negotiations. The latest news comes just days after it was reported that Snapdeal board has approved $900-$950 million buyout deal. If the deal with Flipkart had gone through, it would have marked as the largest acquisition in the Indian e-commerce landscape.
Snapdeal spokesperson said,
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.
Japan’s Softbank, the largest investor in Snapdeal said 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”, the company said.
The online marketplace said it has a “new and compelling direction – Snapdeal 2.0” and has made significant progress towards the ability to execute this by achieving a gross profit this month. It plans to sell certain non-core assets and reduce workforce significantly. Snapdeal had already slashed 600 jobs at the beginning of this year. The company recently closed a $60 million deal to sell its online wallet Freecharge to Axis Bank.