Snapdeal founders Kunal Bahl and Rohit Bansal have written a letter to the employees of the company where they have promised then higher salaries. The letter has said that Snapdeal investors are ‘driving the discussions around the way forward’. The way the founders have reached out to their employees is very vague and does not even answer the speculations around the probable acquisition of the company. Bahl and Bansal only said that the top and only priority is the ‘well-being of the entire team’. Bansal and Bahl said the annual performance review process is almost complete and employees will be receiving salary revision and promotion letters (wherever applicable) in the next two weeks. According to sources, India’s third-largest online shopping platform could be sold to larger rival and market leader Flipkart.
According to various reports, Snapdeal has around 3 thousand employees in its e-commerce operations. The company also has a mobile wallet (FreeCharge) and logistics (Vulcan) operations. Softbank, Snapdeal’s biggest investor has been reportedly said to be re-working its plan for the sale of the e-commerce website and a final decision will probably be made in the next few weeks. An announcement is speculated to be made in the next couple of months. There are speculations which suggest that Alibaba-backed Paytm is considered to be a potential buyer. If the takeover is completed, it would mark the largest acquisition in the country’s e-commerce space and change the landscape of the sector that is witnessing intense competition among players.
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Alibaba is also a shareholder in Snapdeal. Until now, Snapdeal and SoftBank have continued to decline to comment on the matter. Snapdeal’s seven-member board includes investor representation from SoftBank, Kalaari Capital and Nexus Venture Partners, and also co-founders Kunal Bahl and Rohit Bansal. The board of Jasper Infotech also has Bharti Enterprises vice-chairman Akhil Gupta as an independent director.
Here is the letter which Snapdeal founders Kunal Bahl and Rohit Bansal wrote to their employees:
There has been a lot of media reporting and speculation around Snapdeal recently.
While our investors are driving the discussions around the way forward, I am reaching out to let you know that the well-being of the entire team is mine and Rohit’s top and only priority. We will do all that we can, and more, in working with our investors to ensure that there is no disruption in employment and that there are positive professional as well as financial outcomes for the team as the way forward becomes clear. Let me repeat, your well-being is our #1 priority.
In the interim, the annual performance review process is nearly complete and you will the receive the salary revision and promotion letters (where applicable) over the next two weeks. Given the incredible progress we have made around our profitability journey as a company, the overall increments this year are higher than those offered last year.
Please do feel free to reach out with your suggestions and concerns. Stay awesome!
Kunal & Rohit