Snapdeal has agreed to sell its subsidiary company Unicommerce eSolutions to Ahmadabad based e-commerce company Infibeam. The deal, which will be an all-stock deal, has been valued up to Rs 120 crore. As per the deal, Infibeam will issue preferential issue of optional convertible debentures (OCD) to Snapdeal.
Unicommerce was one of the many acquisitions that Snapdeal made during its hey days. The company is basically a SaaS company that offers end-to-end e-commerce solution – right from warehouse management, multi-channel order fulfillment, e-commerce order processing to inventory management and many other services.
One of the factors that may have prompted Infibeam to go for this deal is the fact that Unicommerce is one of the few profitable Indian companies in the SaaS space. It reportedly boosts more than 10,000 clients including high profile names like Myntra, Jabong, Lenskart and others.
Infibeam is already engaged in offering software development services and the latest acquisition may have been made to growing its software business further.
Snapdeal has been on a spree to sell subsidiary companies
Ever since the collapse of Flipkart-Snapdeal deal last year, the latter has been on a spree to sell all its subsidiary companies as it looks to cope with the cash deficiency situation. The Gurgaon based company first sold its e-wallet business Freecharge to Axis Bank and then sold logistics company Vulcan Express to Kishore Biyani-led Future Group. Both these deals were valued Rs 385 crore and Rs 85 crore respectively.
Snapdeal was once India’s second-largest e-commerce company but today it is struggling to eke out a survival. The great reversal in company’s fortunes can be largely attributed to Amazon’s entry into India e-commerce market and the subsequent competition that followed.
While Flipkart managed to hold on to Amazon’s aggressive competition, Snapdeal could not. Many experts believe that the sheer lack of leadership and innovation was latter’s undoing.