Snapdeal runs a popular affiliate network to promote coupons, deals, cash back offers, and more to potential customers. Recently, however, they made an unexpected announcement to all their affiliates. They won’t be getting paid for orders or installations that were secured through their efforts.
The company is having cash flow issues and they want to conserve the money they do have while trying to get things sorted out. Currently they are looking for new investors, especially from existing investor SoftBank, to get the funds they need in order to put them on more secure footing.
Two long-time senior executives at Snapdeal have left the online marketplace, adding to the ongoing exodus at the company , people aware of the development told TOI. Abhishek Kumar, head of M&A and investments, and Sandeep Komaravelly, SVP of Shopo, a C2C marketplace, have resigned from the e-tailer, which has been losing ground to rivals over the past months.Komaravelly , one of the oldest employees at Snapdeal, joined after his startup Grabon was acquired by the ecommerce player in 2010, while Kumar played a key role in multiple acquisitions for Snapdeal and is quitting after a three-year stint.
A spokesperson from Snapdeal said, “The Snapdeal affiliate programme is being recast to make it more effective and to drive higher (return on investment).”
The company primarily works in India and the surrounding region, though there are affiliates promoting their deals from a wide range of locations.
What is next for the company, or the affiliates, remains to be seen.