Like its unicorn peers, Snapdeal too is in a bit of shit state. The company shutdown Shopo, is laying off a lot of people and is seeing exits by key employees.
While Snapdeal founders have (again) said that they will be profitable in 2 years, we all know how real / fake that talk is. The truth is that Snapdeal has been trying hard to get in bed with Alibaba and with Alibaba now going cozy with Paytm, Snapdeal’s future remains a guesswork.
And in between all of this, Snapdeal is sitting on a very interesting business which it has no business pursuing further – i.e. Freecharge.
It’s an irony that Freecharge was a leader in its category and Paytm copied them (each and every step) and now, Paytm has left Freecharge well behind in payment space. Lately, there is no real stuff coming from Freecharge and from an outsider point of view, it’s in ‘maintenance state’.
My guess is that Snapdeal will easily get 1.8X return on Freecharge and should simply use this to fuel its core business. One thing is for sure : Snapdeal will get acquired / valued for its core business and not for Freecharge and the core is under severe attack.
So sell off Freecharge and let it roll. Before it totally loses its relevance.