Connect with us
SS

Latest News

Snapdeal Cofounders Write To Employees After Terminating Flipkart Deal

Published

on

Snapdeal Cofounders Write To Employees,Snapdeal Terminating Flipkart Deal,Vulcan Express,Snapdeal Founders,Flipkart Merger Deal,Snapdeal 2.0 strategy,Flipkart Latest Deal,2017 Latest Business News,Startup Stories


Snapdeal recently decided to go their own independent route and declined the $ 900 million takeover offer from Flipkart. After the collapse of the merger, many senior level executives including the Vice President of Product Pradeep Desai, the Vice President of Engineering Viraj Chatterjee and the Head of IT Gaurav Gupta quit the ecommerce company. The company had laid off close to 600 employees earlier this year, across the ecommerce marketplace and its subsidiaries, FreeCharge and Vulcan Express.

While Snapdeal has successfully sold its online payments arm FreeCharge to Axis Bank, the future of the logistics arm Vulcan Express still hangs in the balance. The founders Kunal Bahl and Rohit Bansal, who have been hesitant about the Flipkart merger since the beginning, released a letter to the employees speaking about the future of Snapdeal. In the letter, the founders touched upon various issues including the ecommerce market in India and their journey as an independent entity. They even spoke about the extensive media coverage the deal received and the complexities it involved.

Both the cofounders firmly believe in the new direction, Snapdeal 2.0, the company must take and the laser focus required to become a ‘champion’ online market space. They aim to make around Rs. 150 crores gross profit in the next 12 months, with a tight control on costs and higher efficiency.

Success is never final, failure is rarely fatal; it is the courage to continue that counts,” the letter added. The fate of this ecommerce company at present remains uncertain, despite the high hopes of the cofounders. One thing that remains certain is that the immediate sale of their logistics arm Vulcan Express, acquired in 2015, will deeply influence the growth of Snapdeal 2.0.

You can find the complete letter here –

Dear Team,

Over the last few months, our company has been engaged in strategic discussions with other players. A lot of time and effort has gone into the process from all participants in this exhausting process. The process has led to intense speculations and uncertainty for our team, partners and shareholders. And now it is time to finally put an end to this saga.

We will be continuing the Snapdeal journey as an independent company. As we have often discussed, the opportunity of e-commerce in India is immense, and the surface of this $200 Billion market has barely been scratched yet. We have a tremendous team, millions of loyal customers, hundreds of thousands of motivated sellers and a phenomenal platform that has been built with years of effort.

All the ingredients of success have always been there in our company. And after the last few months of tumultuousness, it is time to focus on the business and leverage all our strengths to progress towards our vision of building the best marketplace to connect buyers to sellers in India.

The good question to ask is why are we moving down an independent path, when so much effort went into determining a strategic combination. There are a few reasons for this, which go beyond the fact that the deal being contemplated was incredibly complex to execute as reported extensively by the media.

Firstly, there isn’t going to be one successful model for e-commerce in India. In every market, there are multiple successful e-commerce businesses, and as long as one’s strategy is differentiated and has a clear path to success, there is a great company that can be built. We firmly believe in our new direction – Snapdeal 2.0 – part of which is a laser focus on being a champion for all sellers in India, enabling anyone to setup a store online in a few minutes and focusing on providing large selection of products at great prices to consumers.

Secondly, we have made tremendous progress towards this new path over the last few months and are already profitable at an gross profit (a.k.a. net margin) level, with clear visibility to making upwards of Rs 150 Crores in gross profit in the next 12 months.

Finally, with the ongoing streamlining of costs and sale of some of our assets, such as Freecharge, we are financially self sufficient as a company and don’t need to raise additional capital to reach profitability. Needless to say, we will need to keep a tight control on our costs and work towards becoming a hyper efficient culture delivering profitable growth, month on month. 

Success is never final, failure is rarely fatal; it is the courage to continue that counts. Let’s work together to make Snapdeal 2.0 a super success!

Thanks!

Kunal & Rohit

Latest News

Calmosis is revolutionizing healthcare in India with legal cannabis use! 

Published

on

An Indian Startup Pioneers the legal use of cannabis in Indian Healthcare

Forget everything you thought you knew about healthcare in India. A groundbreaking startup called Calmosis is making waves in Bengaluru with its unique approach to holistic wellness, led by a dynamic duo: Karan and Praveen.

 

Calmosis product.

 

Karan Naidu, a BMSCE graduate who calls Bangalore home, has poured his passion and resources into building Calmosis. By his side is Praveen Singh Rajput, a serial entrepreneur and author who helms the gifting marketplace startup FRINZA. Praveen brings his business acumen honed at Symbiosis Institute of Business Management, Bangalore, to the table.

Together, they’ve drawn inspiration from a personal quest – helping Karan’s mother overcome sleep issues. This led to the birth of Calmosis, offering meticulously crafted elixirs that blend the wisdom of Ayurveda with natural cannabis extracts.Vijaya, as cannabis extracts are known in ancient Indian medicine, has been revered for centuries for its medicinal properties. Calmosis harnesses this potential to promote restful sleep, alleviate stress and anxiety, and even ease migraines. 

Unlike traditional medications that often come with unwanted side effects, Calmosis’ Peace Mantra and Sleep Mantra elixirs provide a safe and natural alternative. But Calmosis’ mission extends beyond physical well-being. Their commitment to quality and transparency shines through rigorous product testing and personalized consultations with expert Ayurvedic doctors, ensuring each customer receives the perfect blend for their individual needs.

 

 

The company’s impact goes far beyond personal health. Calmosis champions social responsibility and sustainability by ethically sourcing ingredients and embracing eco-friendly practices, creating a positive ripple effect on local communities and the environment.

Embarking on a journey towards a healthier you with Calmosis is as easy as a few clicks. Visit their website, place an order, and have their transformative products delivered straight to your door. In a world obsessed with constant hustle,Calmosis offers a much-needed oasis of calm. Combining the wisdom of ancient practices with modern innovation,they’re helping individuals rediscover balance and tranquility in today’s fast-paced world. So, ditch the chemical concoctions and embrace the power of nature’s healing touch with Calmosis. They’re rewriting the healthcare narrative in India, and you can be part of the revolution.

 

Continue Reading

Latest News

Mercedes Hits the Brakes on EVs: Profit Woes Lead to Focus on Gas-Powered Cars

Published

on

StartupStories - Mercedes

Luxury carmaker Mercedes-Benz is experiencing a shift in gears, prioritizing gasoline-powered vehicles over its previously ambitious electric vehicle (EV) strategy. This comes after disappointing sales figures and shrinking profit margins for their electric offerings.

The Dream Runs out of Charge:

Mercedes, a leader in the luxury car market, had set a goal to be fully electric by 2030. However, sluggish sales of their electric vehicles, particularly the high-end EQS and EQE sedans, have forced a recalibration of their plans. The company’s profit margin dipped to a concerning 9% in the first quarter of 2024, falling below their long-term target range.

Why the Slow Charge?

Several factors are contributing to the lackluster performance of Mercedes’ EVs:

  •  Price Point Pinch: The high price tag of Mercedes’ electric cars, ranging from $70,000 to $120,000, limits their appeal compared to more affordable electric options. 
  •  Competition Heats Up: Other luxury carmakers like Tesla and BMW are offering strong competition, with some even surpassing Mercedes in EV sales growth. 
  •  Infrastructure Concerns: Gaps in charging infrastructure and anxieties about range remain significant deterrents for potential EV buyers.

Back to the Drawing Board:

In response to these challenges, Mercedes CEO Ola Källenius announced a revised strategy. The company will:

  •  Extend Focus on Combustion Engines:  Production of gasoline-powered and hybrid vehicles will continue well into the 2030s, catering to customer demand.
  •  Rethink EV Strategy: Mercedes will analyze consumer preferences and market trends to refine their electric car offerings. This may involve focusing on more affordable models or improving features to enhance range and charging efficiency.

The Road Ahead

The shift by Mercedes highlights the complexities of the automotive industry’s transition to electric vehicles. It underscores the need for car manufacturers to balance ambitious environmental goals with the realities of consumer behavior and market competition.

Is this a Permanent Pause?

While Mercedes is putting the brakes on its all-electric vision, it doesn’t necessarily signal a complete retreat from EVs. The company may leverage this time to strengthen its electric offerings and ensure they are competitive in the rapidly evolving market. Only time will tell if Mercedes can reclaim its position as a leader in the electric vehicle race.

Continue Reading

Artificial Intelligence

Reddit Soars After Strong Earnings and Upbeat Outlook

Published

on

Reddit, the social media platform known for its online communities and meme culture, saw its stock price jump significantly after releasing its first earnings report since going public in March. Investors were impressed by the company’s strong financial performance and optimistic forecasts for the future.

The report highlighted a surge in user engagement, with daily active users increasing by 37% to 82.7 million in the first quarter. This growth was accompanied by an 8% rise in average revenue per user, indicating Reddit’s success in monetizing its platform. 

Perhaps the most significant factor driving the stock price increase was Reddit’s forecast for the second quarter. The company projected revenue to fall between $240 million and $255 million, exceeding analyst expectations. Additionally, Reddit anticipates achieving break-even status or even generating a profit, surpassing predictions of a loss.

This positive outlook can be attributed in part to Reddit’s flourishing advertising business. The company is also capitalizing on a new revenue stream: content licensing deals with artificial intelligence (AI) firms. Reddit’s vast collection of user-generated content provides valuable data for training AI models, attracting companies like Google.

Analysts believe Reddit is still in its early stages of monetization and predict continued growth in the coming quarters, fueled by advancements in ad targeting and measurement tools. This optimism is reflected in the stock price surge, which has climbed roughly 70% since Reddit’s IPO.

Overall, Reddit’s first earnings report paints a bright picture for the company’s future. With a thriving user base, increasing revenue opportunities, and a promising outlook, Reddit appears well-positioned for continued success in the ever-evolving social media landscape.

Continue Reading
Advertisement

Recent Posts

Advertisement