After lurching from one disaster to another in 2016, Japan’s Softbank is hitting all the right notes this year.
Flipkart, the country’s largest e-commerce marketplace, has received an investment of $2.5 billion from SoftBank Vision Fund, giving it the much-required arsenal to continue in pole position for the next 18-24 months, as it fends off competition from global behemoth Amazon.
SoftBank’s new $93 bn Vision Fund is putting $2.5 bn into online retailer Flipkart, in the biggest private investment to date in India’s technology sector.
Snapdeal called off the USD 950 million-takeover (over Rs 6,000 crore) by Flipkart, apparently over differences in valuation and terms of what could possibly have been the largest deal in the Indian e-commerce space.
As Snapdeal vacates its number three position in the Indian e-commerce market to embark on a new independent path inspired by Chinese marketplace Taobao, will founders Kunal Bahl and Rohit Bansal turn lucky with its second avatar?
Snapdeal, the struggling Indian ecommerce company, has called off talks on a sale to rival Flipkart that had been pushed by SoftBank, its biggest shareholder. The company, which has been steadily losing market share to Flipkart and Amazon’s Indian subsidiary, said that it would seek to reinvent itself under a strategy that it dubbed “Snapdeal 2.0”.
India’s third-largest private-sector lender Axis Bank snapped up beleaguered digital wallet firm FreeCharge for $60 million (Rs 385 crore) last week. In the process, it pipped other suitors such as bigger digital wallet firms Paytm and MobiKwik, e-commerce major Amazon, payments firm PayPal, Airtel Money and South Africa’s Internet group Naspers.
不过最近，有消息称虽然 Flipkart 已经完成了尽职调查，但双方交易还是遇到了一些障碍，因为 Snapdeal 公司董事会已经拒绝了 7-8 亿美元的收购报价。
Snapdeal is finally selling off FreeCharge, its mobile transactions platform, to private sector Axis Bank. The bank said in a communication to the Bombay Stock Exchange that it has entered into a share purchase agreement with Jasper Infotech Private Ltd, Snapdeal parent, to acquire 100 percent equity in FreeCharge for a consideration of Rs 385 crore.
Flipkart’s acquisition of Snapdeal could come through in July, at a valuation that is much less than had been initially envisaged. While Snapdeal is gunning for $1 billion from Flipkart, the latter is only willing to pay $350-400 million.
Online retailer Flipkart Online Services Pvt. is said to be close to a merger with smaller rival Snapdeal as it looks to fend off Amazon.com Inc. Yet, that may not be enough in a battle with the deep-pocketed American giant that has caught up with the homegrown rival.
India’s largest e-commerce company Flipkart’s recent fundraise of $1.4 billion (around Rs 9,000 crore), the biggest-ever in the country’s burgeoning consumer internet sector, has undoubtedly filled its coffers for now, but it also begs some important questions. Will this be the company’s last round of external funding as it looks to turn profitable? Is a stock-exchange listing by 2019 Flipkart’s next destination?
Jasper Infotech Pvt. Ltd, which runs online marketplace Snapdeal, is reportedly giving out pay hikes of up to 15% to its employees even as talks of its merger with India’s biggest e-commerce company Flipkart are fast progressing.
Start-ups, the playfield of the young and the restless, have had a hard reality check.
Till a few years ago, profitability received the step-child treatment from Indian e-commerce entrepreneurs.
India’s bustling startup ecosystem is in a state of hysteria as e-commerce major Snapdeal implodes.
If Snapdeal follows the rule of the game, the company would deny any kind of merger talks with rival Paytm, or with investor Alibaba, unless a deal is concluded, at least verbally.
The e-commerce industry in India has received another blow. On Wednesday, India’s third biggest e-commerce firm Snapdeal announced that it will be laying off employees. Though the company refrained from giving out exact numbers of people to be given the pink slip, industry insiders expect it to be in the range of 400 to 600.
Top-level exits continue at Snapdeal, India’s third largest e-commerce company, as Tony Navin, head of partnerships and strategic investments, decided to move on after a seven-year stint. Navin’s exit comes in quick succession of two other bigwigs — Abhishek Kumar and Sandeep Komaravelly — exiting the company.
Funded by foreign investors and parent companies, India’s leading e-commerce firms — Flipkart, Amazon and Snapdeal — have increased its losses by 51% in just one year to Rs 11,754 crore, to fund growth and dole out discounts to gain marketshare.
At Rs 11, 754 crore, the combine losses of ecommerce majors Flipkart, Amazon and Snapdeal is almost equal to the annual budget of the Indian Space Research Organisation (ISRO).
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Sanchit Vir Gogia, Founder & CEO of the Digital Transformation Research and Advisory firm Greyhound Knowledge Group points out that earlier e commerce firms used to depend on reactive analytics like push based email campaigns but over the years the need for personalization has pushed firms to use predictive analytics not just for marketing purposes but also for inventory logistics. “Predictive analytics is going beyond the consumer behaviour patterns. Firms are using cloud and writing algorithms attuned to their company needs for crunch situations like peak sales or holiday season sales.” says Gogia.
The startup ecosystem has become a hot topic for all and sundry. They have taken off and matured because of various factors such as availability of funding, consolidation activities by a number of firms, evolving technology space and a burgeoning demand within the domestic market has led to the emergence of startups.
India’s most valued internet company has been devalued—yet again. In one of the most drastic markdowns for Flipkart so far, one of its investors, a mutual fund managed by Morgan Stanley, slashed the Bengaluru-based e-commerce major’s value to just $5.54 billion (Rs38,030 crore). At its peak in May 2015, Flipkart was valued at $15.5 billion.
With increasing digitisation in India, cloud computing technology provider Salesforce along with its partners plan to add 5 lakh jobs by 2020.
It’s past midnight. Rick and Nina sit glued to their laptops, waiting to hit the ‘Buy Now’ button. The online Pre-Christmas sale will start any minute and they are hoping to buy their favourite gadgets at less than half the price.
Rick and Nina are not alone. In fact they are a part of a current clan of over 1.5 billion online shoppers across the globe (per latest Greyhound Research estimates). As steep discounting online sales, especially around the holidays and festivals, continue to become a global trend this number is expected to cross 2 billion by 2020.
On October 2, leading Indian e-commerce companies will kickstart their annual festive season sales. The three months starting October are crucial for both offline and online retailers in India as they account for some 40% of the annual consumer durables and electronics sales in the country.
Leading Indian e-commerce companies began preparations for this year’s sale months in advance.
In order to break away from the herd of e-commerce players who fight on discounts, faster delivery and selection, Snapdeal wants to be your shopping assistant.
The e-commerce discount wars for the festive season will begin soon. Snapdeal has geared up for it with a change in logo and slogan. The change has been brought about, explains Kunal Bahl, Co-Founder and CEO, to “enable users to unlock their aspirations”.
Snapdeal, one of India’s largest e-commerce firms, is giving itself a brand makeover—the second time in six years.
After sacking 400 “under-performing” employees in July, the country’s top etailer Flipkart is learnt to be in the process of letting go of 800 more employees. The e-commerce major plans to “out-place” half of these employees, while the rest will be left to find jobs on their own.
India’s e-commerce industry could see a major shake-up if online retailer Snapdeal’s preliminary conversations with local rival Flipkart and US-based Amazon to explore a possible merger make any headway. But a Flipkart-Snapdeal merger is a more likely scenario than a deal between Snapdeal and Amazon, say analysts.
Indian e-commerce giant Flipkart, which has asked around 400 of its 33,000-strong workforce to leave the company on grounds of non-performance, said the move was in line with industry practices.