It is too early to comment who will be strengthening the ecommerce muscle by buying a unicorn like Snapdeal. Talks are on of selling Snapdeal to Flipkart or Paytm but all the three companies have denied it. The whole discussion came into picture when Softbank decided to talk about $50 million of bridge finance to support this initiative This news first came out in an online daily newspaper The Mint.
Your information is incorrect and without basis. We are making decisive progress in our journey towards profitability and all our efforts are aligned in this direction. the spokesperson said in an email to Mint.
Earlier this year, Snapdeal has laid off over 600 employees to restructure its business and wanted to become profitable . This Financial year Snapdeal has reported a loss of $14.93 million.
Who is buying Snapdeal - Paytm or Flipkart ?
Let's examine who will be the potential beneficiary of this deal if it happens. Recently Flipkart has raise $1billion to stay in competition with Amazon, Snapdeal and Paytm . While PayTm is quite new entrant in the market with Paytm mall app - ecommerce arm of Paytm but it is backed by Alibaba. Alibaba holds 40% equity in Paytm ecommerce business and it has also funded Snapdeal (though the stake is only 3%) .
Verdict : There are high chances of Snapdeal to be acquired by Paytm instead of Flipkart
If this happens, Flipkart will loose this battle and it will question its survival.