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    Abhijit Bhole
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    7 views7 pages

    Snapdeal

    Uploaded by

    Abhijit Bhole

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 7
    After a rather long hiatus, Snapdeal is in the news again. Is the PR about a turnaround true - has Snapdeal really turned the corner or is there more to this than meets the eye? Snapdea (Once (and fature?) unicorn “There was atime not that fog ago when Snapdel ys the proverbial poste boy of not just Indian e-commerce but of Indian startups in gene “The pioneer in the e-commere marketplace mode, Snapeal trated nearly 82 ilo n funding fom blue-chip investors sch as SoRBank, ‘ay, Bessemer, Nexis and Ontario Pension Fund was destined for gest things, beyond the token startup unicorn ag, Butin the aftermath ofits failed shotgun marriage o Flip, Snapdeal Seemingly el off the mapa forgotten startup relic that had no relevance or ‘meaning ina new word dominated by the Walmart/ipkart: ‘Amon dopo ati no una Bat comeback i, Startup hero leading media house recently anointed the Soapdea founders, Kunal Bal td Rohit Banal as comeback kids in thee startup awards shown award tha purportedly recognised the tenacity of Snapdeal to emerge as “one ofthe bigest survival stores ofthe Indian startup ecosystems in The soure of this optimism? ‘Acompany blog ost by Kona Bahl where be elamedthat"in the recent oneluded financial yar, FY 2018-19, Sapdeal grew its consolidated revenues 72% YoY, while simltancously reducing loss by 70% YoY and revenue from operations for Snape (standalone) grew by 8795 Yor" Revenue 225 v- Loss reo 7 cate on. ae o N = | > a ° ° ° ° Fy2017418 FY 2018-49 Fy2017-18 FY 2018-19 ‘Bab so daimed that “over the lst wo ears, we have reduced our lass by amineredible 968" and that SnapdealDeeame the st agescalee commerce company in nda to achieve the cash-proit milestone by cash breakeven inthe month of Jne 2048 In anoher post, Bab claimed tata July 2018, the ompany ut down on “ash bur by 00% and made the highest-ever net even in its history in Oetober 208° While these averments might be suicent to convince erdulous media people ooking toissue big-hang headlines and doe oat startup awards, the prof ofthe padding is ot in accepting these statements at face value but in taking Took at the company's ane statements to see the numbers dlp, Sapa ing show tht the operating evens ofthe company did see slglicant up of 84%, fom Re 455 ror ($64 millon) wo Rs 89 core ($185 millon), But that’s where the good news ends. ‘While the revenue numbers themsches have some curios dsrepancies, 8 farmore important takes that contrary tothe company’s claims of edaing operating loses by 70%, thee, nat, a 92% YoY nerease in eto losses. far ery rom the "urnaroun”nareatie being pede Inthe pres. ows this possible? \Weloome to Snape’ Astosreophag Sass. You are what you eat Before you reach fora dictionary “autosarophagy"is the term used fo self cannibaism~the practice of eating ones ow does thisplay ont inthe case of Sapdeal? {In Jly 2017, the proposed merger between Saspdea and Fphart was lly called off The ofl ines that Ba and Bansal aed off the merger because they wanted to stay independent by choice. However there have always been whispers tat thease through primarily Because Fiphart wanted the Sapa! founders to sgn ndemniistion agreement, {hereby aking esponsibility forsl previous busines decisions and lesings Something that Bahl and Bansal were loath odo. ‘eta t may, this esson tcl off the merger was on tha linated ‘th Snapdeal founders fom thee investors, most of whom wanted the del to go through. So while the decison tostay independent as Snapdeal 2.0 ve Bahl and Bansal a chance to continue running the company, the had to do so without expecting any farther suppor from their investor. Alege bur rte couple wth sallow funding treasure chest made fora

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