Indian eCommerce firm Snapdeal is not for sale, the company says after reports that Snapdeal was in discussions with domestic rivals for a potential sale, said Reuters. Sources had said that Snapdeal was in talks with Paytm E-Commerce Pvt Ltd and Flipkart for a potential sale.
“Snapdeal categorically denies having had any such discussion. The information is incorrect and without basis,” wrote a company spokeswoman. “We are making decisive progress in our journey toward profitability, and all our efforts are aligned in this direction.”
Speculation of a sale has bubbled up in recent months as Snapdeal feels the heat of online sales competition. The online marketplace announced back in February that it is “restructuring” by laying off employees. The number of layoffs is said to be between 500 and 600 people.
“On our journey toward becoming India’s first profitable eCommerce 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,” said a Snapdeal spokesperson. “We have realigned our resources and teams to further these goals and drive high-quality business growth.”
Snapdeal’s competitors also significantly outpace the company when it comes to investments. While Flipkart has recently raised $1.5 billion and Amazon has invested $3 billion in expanding into the Indian market, Snapdeal has raised only $1.6 billion overall to date.