Snapdeal’s woes are far from over. After deciding against selling out to Flipkart, and having to slash 80 percent of its workforce due to uncontrollable losses, the online marketplace now faces a challenge from some employees who are unhappy with the Freecharge sale. Last month, Snapdeal had sold its digital payments arm to Axis bank for Rs 384 crore in an all-cash deal. A Business Standard report now claims that a few employees have opposed the deal and plan to approach the PMO to stop it. Also Read - iPhone 11, iPhone XR up for grab with massive discount on Flipkart Big Saving Days saleAlso Read - Flipkart Big Saving Days sale begins: Pixel 4a, Realme X7, Samsung Galaxy F62, more on discount
However, it isn’t clear why they’d want to approach the PMO instead of the RBI, which regulates all banking-related deals. The dissenting employees at Snapdeal are said to have circulated a letter within the organization holding founders Kunal Bahl and Rohit Bansal responsible for the downfall of the startup, which was valued at $6.5 billion in February 2016. The letter further claims that Snapdeal 2.0 as Bahl and Bansal wants to call their future avatar was forced upon employees who were keen on selling out to Flipkart in a $900-million deal that was being engineered by SoftBank. ALSO READ: Many vertical heads have resigned at Snapdeal as it struggles to reboot: Report Also Read - Flipkart Big Saving Days smartphone deals: Pixel 4a is star of the show once again
A Snapdeal spokesperson reportedly said, “The company cannot comment on unsubstantiated allegations made by unidentified sources. The board has made no decision with regard to the team composition for Snapdeal 2.0.” Several vertical heads, including those of product, technology, engineering and FMCG, resigned after the Flipkart deal was called off. Snapdeal founders had in an email tried to pacify employees by saying that the company was “self-sufficient” and didn’t need to raise any additional capital to reach profitability. ALSO READ: Snapdeal-Flipkart deal: Founders pacify employees in an email after merger fails
Bahl had claimed that the Flipkart deal was “incredibly complex to execute”. With Axis Bank’s cash now in the kitty, Snapdeal plans to reboot as a leaner, meaner “champion of sellers”. Following employee exits both forced and voluntary the Gurgaon-based firm will be left with 300-odd people. “We will be continuing the Snapdeal journey as an independent company… We have a tremendous team, millions of loyal customers, hundreds of thousands of motivated sellers and a phenomenal platform that has been built with years of effort. All the ingredients of success have always been there in our company,” he wrote.