Newspatrolling: In a significant development, Snapdeal has called off its merger with rival Flipkart. Earlier, it was almost certain that Snapdeal will be merged with Flipkart through a merger deal worth $950 million, but at the last moment, Snapdeal’s chief executive and founder Kunal Bahl seems to have had a change of heart. Bahl said that Snapdeal has decided to stay independent and it will be kick starting its “Snapdeal 2.0” journey, to be able to effectively compete with its rivals such as Flipkart and Amazon. Bahl also wrote a letter to all its employees, asking them to get ready for a new journey and aim for bigger goals. In the letter, Bahl tells his employees that Snapdeal has the support of millions of loyal customers and thousands of motivated sellers and there should not be a problem in making a fresh start.
Bahl also explained to employees that the recent sale of FreeCharge has improved Snapdeal’s financial position, which can be leveraged to make a fresh start. Bahl also said that the company has started generating profits, which bodes well for the future of the company. The CEO also said that the company would be cutting costs to remain competitive in the market. Sources said that Snapdeal may trim down its workforce by around 70 percent to reduce costs. Snapdeal’s recent move has also been supported by Japan’s Softbank, which is the largest investor in Snapdeal.