In an effort to calm employee’s anxiety with cash crunch reports, the founders of e-commerce Snapdeal have approached directly to employees by holding townhall meetings in past weeks, according to sources, promising profit and combing off conquest talk. The sources that are recognizable with the group refuse to be named as the meetings were not public.
Similar to what is happing with other e-commerce players in India, Snapdeal is blazing cash to maintain discounts - and keep customers - in a cut-throat online market. But as the number three player, it is also facing growing pressure from investors and its own employees to deem its bottom line.
One of the sources said there had been at least five town halls in recent weeks, with founders Kunal Bahl and Rohit Bansal giving motivational speeches. As per source “It was only profitability and profitability," describing answers to questions from employees whether the company was a takeover target.
Snapdeal got funding support in China, from Chinese funds and Alibaba Group Holding Ltd, already an investor, sources with familiarity of the matter said. It has so far come back bare handed. While, the company is expected to fetch profit in coming two years and is eyeing a market listing around the same time.
Headhunters like Sinosh Panicker, a partner at Hunt Partners, said some of the clients witnessed a leap in applications from Snapdeal employees. Some employees allude anxiety after the departure of 600 staff in February, laid off from Snapdeal, its logistics arm Vulcan Express and payments unit FreeCharge.