A lot of things are happening in Indian e-commerce are as after series of events -- Snapdeal backed off merger with Flipkart thereafter Snapdeal's largest investor Softbank invested whopping $2.1 billion in Flipkart -- employees of Snapdeal have decided to protest by writing a joint letter to co-founders, Kunal Bahl and Rohit Bansal.
The employees -- both former and current -- have also sent copies of the letter to Prime Minister’s Office, Ministry of Finance and Governor of the Reserve Bank of India.
In a letter dated August 3rd, reviewed by Moneycontrol, the employees allege that the Plan B or Snapdeal 2.0 plan is not viable and would only keep the founders in-charge at the cost of a large number of employees.
To recall, after Snapdeal founders backed-off from merger with Flipkart and this whole lot of drama when finally ended the repercussions of failed merger went towards the company employees when it was reported that the company will layoff 80% of its employees. Although, it was never officially announced from Snapdeal.
"An independent inquiry into the affairs of this company would reveal how the interests of employees and possibly shareholders were destroyed to protect the interest of two people," the letter reads.
The letter further reads, "We saw a proud unicorn change into a troubled company. But we kept the faith and believed what you said - the employees of this organization are your "single biggest priority".
The letter has also been marked to the managing director of Axis Bank, among at least a dozen other recipients. Last month, Axis Bank announced the acquisition of Snapdeal's mobile wallet firm Freecharge in an all cash deal for Rs 385 crore.
Snapdeal has responded to the allegations in the letter. "The board has made no decision with regard to the team composition for Snapdeal 2.0. The company cannot comment on baseless, unsubstantiated allegations made by unidentified sources," said a Snapdeal Spokesperson.
Sources close to the recent developments said that it was the disagreement between the entire set of two dozen odd stakeholders that led to termination of merger talks. "Founders cannot be squarely blamed as they had only agreed to the possibility of a merger and a subsequent due diligence early on," said a source close to the merger talks.
To recall, according to a Reuters report, while the board of Jasper Infotech, which runs Snapdeal, had approved Flipkart’s second offer, the deal was awaiting an approval of smaller shareholders, which never came. Reportedly, the shareholders weren't happy with the term sheet furnished by Flipkart as it was laced with a lot of 'hold backs' and 'clauses.'
Related Reading - Why Snapdeal Cancelled Flipkart Deal In Last Stage
The letter from employees also questions the co-founders decision making with respect to some of the acquisitions and initiatives including the acquisition of logistics firm GoJavas.
In the letter, the employees seem to be unhappy about the founders' 2.0 plan. "It is a poisonous plan to destroy the organisation so that you stay in charge. So many people to be impacted for the sake of just two of you," the letter reads.
As per the 2.0 plan, Snapdeal is expected to lay-off about 600 people which could make it a leaner organisation
Kunal Bahl, co-founder, however boasted after calling quit with Flipkart deal boasted of making Rs 150 Crore gross profit in next 12 months.
According to the letter, the entire episode at Snapdeal has impacted around 40,000 people including Snapdeal's employees and their dependents.
"These are real people, not statistics. They are from different functions and they know what you have done," the letter further says.
While the letter seems to be a vent for the troubled employees, we couldn't independently verify the number of employees who have protested with the letter.
The employees -- both former and current -- have also sent copies of the letter to Prime Minister’s Office, Ministry of Finance and Governor of the Reserve Bank of India.
In a letter dated August 3rd, reviewed by Moneycontrol, the employees allege that the Plan B or Snapdeal 2.0 plan is not viable and would only keep the founders in-charge at the cost of a large number of employees.
To recall, after Snapdeal founders backed-off from merger with Flipkart and this whole lot of drama when finally ended the repercussions of failed merger went towards the company employees when it was reported that the company will layoff 80% of its employees. Although, it was never officially announced from Snapdeal.
"An independent inquiry into the affairs of this company would reveal how the interests of employees and possibly shareholders were destroyed to protect the interest of two people," the letter reads.
The letter further reads, "We saw a proud unicorn change into a troubled company. But we kept the faith and believed what you said - the employees of this organization are your "single biggest priority".
The letter has also been marked to the managing director of Axis Bank, among at least a dozen other recipients. Last month, Axis Bank announced the acquisition of Snapdeal's mobile wallet firm Freecharge in an all cash deal for Rs 385 crore.
Snapdeal has responded to the allegations in the letter. "The board has made no decision with regard to the team composition for Snapdeal 2.0. The company cannot comment on baseless, unsubstantiated allegations made by unidentified sources," said a Snapdeal Spokesperson.
Sources close to the recent developments said that it was the disagreement between the entire set of two dozen odd stakeholders that led to termination of merger talks. "Founders cannot be squarely blamed as they had only agreed to the possibility of a merger and a subsequent due diligence early on," said a source close to the merger talks.
To recall, according to a Reuters report, while the board of Jasper Infotech, which runs Snapdeal, had approved Flipkart’s second offer, the deal was awaiting an approval of smaller shareholders, which never came. Reportedly, the shareholders weren't happy with the term sheet furnished by Flipkart as it was laced with a lot of 'hold backs' and 'clauses.'
Related Reading - Why Snapdeal Cancelled Flipkart Deal In Last Stage
The letter from employees also questions the co-founders decision making with respect to some of the acquisitions and initiatives including the acquisition of logistics firm GoJavas.
In the letter, the employees seem to be unhappy about the founders' 2.0 plan. "It is a poisonous plan to destroy the organisation so that you stay in charge. So many people to be impacted for the sake of just two of you," the letter reads.
As per the 2.0 plan, Snapdeal is expected to lay-off about 600 people which could make it a leaner organisation
Kunal Bahl, co-founder, however boasted after calling quit with Flipkart deal boasted of making Rs 150 Crore gross profit in next 12 months.
According to the letter, the entire episode at Snapdeal has impacted around 40,000 people including Snapdeal's employees and their dependents.
"These are real people, not statistics. They are from different functions and they know what you have done," the letter further says.
While the letter seems to be a vent for the troubled employees, we couldn't independently verify the number of employees who have protested with the letter.
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