Snapdeal is on the No.3 spot in e-commerce department after its rivals Flipkart and Amazon. Sources said that the company has losses doubled ₹2,969 crores for the fiscal year 2016 compared to ₹1,319 crores in the previous fiscal year, estimated loss of ₹160 crores p.m.
The company said ” In order to deliver the best in class costumer experience and to set up the necessary infrastructure for future growth, there was an increase in fulfillment & overhead expenses” this could be reason for the loss they incurred.
Paytm is another company who rose to height due to demonetisation and is in competition with e-wallets of the big banks in India including Chillr of HDFC Bank and Buddy of SBI. There is still losses loitering in the company soaring four-gold to ₹1,549crores according to the documents filed with Registrar of Companies (ROC).
These two companies in huge losses are on the process of merging and the investor would be Alibaba who already is backing up Paytm and their share in these companies would be 40% and 3% respectively in an all stock deal.
One of the officials,said,” Snapdeal and Paytm have held talks to merge and this deal is driven by Alibaba”,” The managements of both these companies are waiting to see how they fare in the first two months of 2017″ as been reported by Track.in.