Snapdeal owned Unicommerce achieves profits, founders leave
New Delhi: Snapdeal-owned Unicommerce, which provides multichannel order fulfilment and warehouse management solutions, said on Tuesday it has turned profitable, even as its founders are leaving the company.
E-commerce major Snapdeal (Jasper Infotech Ltd), which was engaged in merger discussions with larger rival Flipkart till last month, had acquired Unicommerce for an undisclosed amount in March 2015. Unicommerce co-founders—Ankit Pruthi, Karun Singla, Vibhu Garg and Manish Gupta—are now leaving the company as was stipulated in the sale transaction.
“As part of the sale transaction in 2015, it was mutually agreed that we would continue to work at Unicommerce for another two years and steer the company to further growth... In August 2017, this period comes to a successful close,” Pruthi said in an emailed statement.
In a separate statement, Unicommerce said the company reported a healthy ebitda margin of 20-25% in the first quarter (April-June 2017), becoming one of the very few startups in India to achieve full profitability. Ebitda is short for earnings before interest, tax, depreciation and amortization
Last month, Snapdeal had rejigged Unicommerce’s operations and elevated Kapil Makhija as the chief executive officer. It had also named Ankit Khandelwal as the chief operational officer of Unicommerce.
“We have had a profitable first quarter and the Unicommerce platform is now used for nearly 20 per cent of the e-commerce transactions in the country,” Unicommerce CEO Kapil Makhija said. He added that the company continues to see healthy growth in India. “We are also exploring select overseas markets where sellers have expressed interest in adopting the Unicommerce technology solutions,” he said.
Unicommerce is now looking at targeting large brands in India and Middle East, and is in active discussions with several brands. The exit of the Unicommerce founders comes just weeks after Snapdeal ended merger talks with larger rival, Flipkart after five months of negotiations. It is now pursuing an independent path with a leaner model and hopes to make a gross profit of Rs150 crore in the next 12 months. Last month, Snapdeal also sold its digital wallet, FreeCharge to Axis Bank for $60 million.
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