E-commerce players feel the heat after Flipkart gets set to acquire rival Snapdeal

The markets is till buzzing with what is being touted as one of the biggest mergers in the Indian e-commerce industry, in which Flipkart gets set to acquire its rival, Snapdeal. While the two companies are negotiating valuation details, other players are feeling the heat with this development and many of them are re-analysing their strategies in a bid to stay afloat.

According to experts, Snapdeal had started moving towards a cash crunch since July 2016 when it had only $500 million of the $1.4 billion raised since October 2014, left in its kitty. The company, however, continued to offer heavy discounts, spent exorbitantly in marketing and rejected two funding offers. One of the biggest baits adopted by e-commerce companies was offering products at almost dirt cheap prices.

Taking a cue from Snapdeal’s fate, brands like Zapyle and Shoptox are re-enforcing their business models. “I agree that we are operating in difficult times but it is too quick to write an obituary of the industry. There is still enough potential and we are focusing on building a strong customer base instead of just luring them with freebies, discounts and cashbacks. So it a well-rounded approach towards product quality, customers’ requirement and entire …read more