E-commerce major Snapdeal has shut down its marketplace Shopo, while realty portal PropTiger has laid off 200 employees after its acquisition of Housing.com.
Snapdeal shuts down marketplace Shopo
As the battle in the e-commerce space heats with leading players Amazon and Flipkart pumping in huge sums of money, Snapdeal, which has been facing financial pressures itself, has been aggressively looking to costs.
In a blogpost Shopo said, “The e-commerce market in India will continue its robust growth. However, we realize that it will take some more years for a broader ecosystem to develop around the C2C segment. It is tempting to go on, but it is often beneficial to pause, take stock and plan ahead for greater success. It is time for us to pause the Shopo journey for now.”
SoftBank-backed Snapdeal, which had acquired Shopo in 2013, said it has absorbed all Shopo employees.
In 2015, Snapdeal, had announced a $100 million investment in the commission-free marketplace it re-launched in July 2015.
Realty portal PropTiger lays off 200 employees
According to the news report, the move comes as a part of the NewsCorp-backed firm’s restructuring exercise to ensure “optimal utilisation” of resources in the combined entity.
“We have made a restructuring exercise to integrate the operations of the two companies.” Asked about the staff cut, he said: “Our headcount has come down by about 200 people from overlapping support functions of the two organisations,” PropTiger.com CEO Dhruv Agarwala told PTI.
“This restructuring will ensure optimal utilisation of resources and leveraging of synergies across the merged entity,” he added.
In early January, PropTiger announced the acquisition of Mumbai-based Housing.com in an all-stock deal, and said it would receive $50 million in fresh funds from News Corp.’s REA Group Ltd and $5 million from Softbank Group.
“Our vision is to help consumers find their dream home in a transparent and simple way. Strategic restructuring leads to sharper business focus that will take us a step closer to realising that vision,” Agarwala said.