eBay takes $62 million hit on snapdeal, writes off investment
Not only eBay, SoftBank also had a success of about $ 1.4 million in its investment in Snapdeal and Hi in the past year.
The American e-commerce giant eBay reported in its annual report that its $ 61 million investment in India resulted in a total loss and had to write down all of this amount. The amount was eBay’s investment in the Indian online portal Snapdeal. As is known, eBay changed its loyalty to Flipkart and invested in it. But before that, it was Snapdeal that eBay had supported, becoming one of the first investments in the boot.
And it’s not eBay just had to suffer losses in the Indian market. SoftBank, the Japanese investor, who was about to start Indian companies with their deep pockets, also announced that their loss in the Indian market amounted to 1,400 million dollars.
Again, this loss was from its investment in Hello and Snapdeal. The addition of the taxi is owned by the corporate name ANI Technologies. In the same way, Snapdeal is represented by his father Jasper Infotech. In this way, a large component is attributed to losses only in Snapdeal.
Snapdeal had to bear the burden of these events since he could not raise funds during 2017 and the electronic workshop had to reduce its operations and suffer a drop in revenues by more than 40%. In addition, SoftBank did the best to sell Snapdeal to rival Flipkart, which did not materialize. Obstacles say that the obstacles were placed by some of the first investments in Snapdeal, who could not accept the agreement offered in the merger proposal.
Snapdeal now has decided to continue independently with its new Snapdeal 2.0 strategy and sold its non-core assets. It sold its FreeCharge payments arm to Axis Bank, a Vulcan Express logistic arm for Future Group and now seeks to sell its Unicommerce unit.