Snapdeal plans layoffs amid bid to conserve cash
Snapdeal has gone into cash-conserve mode after talks for a bridge round of funding with existing investor SoftBank were deferred because of differences over valuation
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Bengaluru/New Delhi: Online marketplace Snapdeal, which is struggling to raise fresh capital, will cut its workforce as it looks to conserve cash. The company didn’t disclose the number of job cuts.
Mint reported on 17 February that Jasper Infotech Pvt. Ltd, which runs Snapdeal, had about Rs1,100-1,200 crore cash left in the bank and Rs300-400 crore at its payments unit Freecharge at the end of 2016.
Snapdeal has gone into cash-conserve mode after talks for a bridge round of funding with existing investor SoftBank were deferred because of differences over valuation, Mint reported then.
Snapdeal said on Wednesday that its logistics unit, Vulcan Express, is expected to turn profitable by the middle of the year.
Snapdeal has also seen an exodus of senior executives in the past two months including the departures of Freecharge chief executive Govind Rajan and Tony Navin, head of partnerships and strategic investments.
“On our journey towards becoming India’s first profitable e-commerce company in two years, it is important that we continue to drive efficiency across all parts of our business, which enables us to pass on the value to our consumers and sellers. We have realigned our resources and teams to further these goals and drive high-quality business growth,” a Snapdeal spokesperson said.