Snapdeal-Flipkart merger called off! Plan B comes into force

“We have a new and compelling direction - Snapdeal 2.0 - that uniquely furthers this vision, and have made significant progress towards the ability to execute this by achieving a gross profit this month. In addition, with the sale of certain non-core assets, Snapdeal is expected to be financially self-sustainable,” Snapdeal said in a press statement.

On July 28, Moneycontrol reported about how the founder and chief executive officer of Snapdeal Kunal Bahl had made his mind clear to the employees, within hours of the closure of the Freecharge deal that he was not in the favour of being acquired by Flipkart.

Also read: Snapdeal has a 'plan B'

Key stakeholder, Softbank has also supported the company in this decision.

"Supporting entrepreneurs and their vision and aspirations is at the heart of Masayoshi Son's and SoftBank's investment philosophy. As such, we respect the decision to pursue an independent strategy. We look forward to the results of the Snapdeal 2.0 strategy, and to remain invested in the vibrant Indian e-commerce space," it said in a statement.

The development comes just three days after the country's erstwhile third largest e-commerce firm announced the sale of its payments unit Freecharge to private lender Axis Bank for Rs 385 crore. The deal has given Snapdeal much needed cash breather for survival.