Lately the news of SoftBank proposing the sell the e-commerce marketplace Snapdeal to its arc rival Flipkart has been doing the rounds. At such a time, Kunal Bahl has reached out to the employees to clear the confusion around this.
In an email sent by CEO Kunal Bahl to the the team on Sunday emphasized that well being of the team was the “top priority” for the founders. He said in the letter:
“There has been a lot of media reporting and speculation around Snapdeal recently. While our investors are driving the discussions around the way forward, I am reaching out to let you know that the well-being of the entire team is mine and Rohit’s top and only priority.”
The mail also indicated that the final decision was now on the investors are they are the ones who are driving this discussion. He further wrote:
“We will do all that we can, and more, in working with our investors to ensure that there is no disruption in employment and that there are positive professional as well as financial outcomes for the team as the way forward becomes clear….Let me repeat, your well being is our #1 priority.”
Sources say that if the proposed deal falls into place, SoftBank will pick up a 20% stake in the company for USD 1.5 Bn, while buying out USD 500 Mn to USD1 Bn worth of Tiger Global’s holding in Flipkart. SoftBank, with an investment of around USD 900 Mn in the company, holds around 33% stake. While Kalaari Capital and Nexus own about 8% and 10%, respectively. The founders, Kunal Bahl and Rohit Bansal, hold just 6.5% stake.
The company’s seven-member board currently includes SoftBank (holds two seats), Kalaari Capital, Nexus Ventures, Rohit Bansal, Kunal Bahl, and Akhil Gupta (Vice Chairman, Bharti Enterprises). Amidst all this, the email also talked about the annual increments for 2016-17 and indicated that they were higher than those offered last year.He added:
“In the interim, the annual performance review process is nearly complete and you will receive the salary revision and promotion letters (where applicable) over the next two weeks. Given the incredible progress we have made around our profitability journey as a company, the overall increments this year are higher than those offered last year.”