Vani Kola, a director of Snapdeal’s parent company Jasper Infotech, has resigned from the e-commerce portal’s board even as investors are in the final leg of talks to merge the firm with its competitor Flipkart, PTI reported on Monday. Kola, who was the sole representative of Snapdeal investor Kalaari Capital, resigned from the board on May 2 without citing any reasons.
“I thank the board not only for giving me the opportunity and assistance to discharge my duties during my tenure as a director of the company but also for the invaluable learnings, I gained from my interactions with my fellow board members,” said Kola, who owns 8% stake in Snapdeal.
Meanwhile, Snapdeal founders Kunal Bahl and Rohit Bansal are planning on distributing Rs 193 crore from the proceeds made from the upcoming merger with Flipkart among existing and several former employees, Business Standard reported. Officials said staff will gain individually by Rs 2 lakh to Rs 1 crore.
“This will depend on how long an employee has been with the firm, their overall experience and their position in the company,” the official said. “Some senior management members who have stuck around with the founders even through tough times will be handsomely rewarded.”
On May 10, Snapdeal’s largest investor SoftBank had said its valuation loss of $1.4 billion (around Rs 9,000 crore) in the 2016-’17 financial year was mainly because of its investments in the e-commerce platform and Ola. In a bid to cut its losses, India’s third largest e-commerce portal has been in talks for a merger with Flipkart. If it goes through, it will be the largest such deal in the Indian e-commerce space.
The founders had asked SoftBank to ensure that Snapdeal’s 1,000-odd employees were absorbed in the merged entity at least for four to five months to ensure a smooth exit. Prior to the confirmation of the merger and speculation over layoffs, Bahl and Bansal had sent emails to their staff, assuring them that the well-being of the workforce was their top priority.