Snapdeal is being sold to Flipkart and the biggest positive is that Snapdeal founders will make anywhere between $15mn-$30mn each (depending on which media report you want to trust).
But that's probably the only positive about this deal. There is mistrust everywhere - right across the board!
Sellers have been trying to halt the sale to Flipkart. They want their settlement before the deal happens. (1).
Snapdeal's Investor Nikesh Arora is under a controversy surrounding this investment (he is accused of kickbacks in his India dealings). (2).
Ex employees of Snapdeal are worried about their ESOPs value. Liquidation clause might just wipe off the entire ESOP value.
Informally, former employees have been told they may get Rs 5,000 per option, which is a steep fall from Rs 1.65 lakh these options were worth at their peak (3).
Is it purely about Snapdeal or just that the ecosystem (of sellers / investors / employees) has been fooled so badly by (most) well-funded startups that they just want to keep their money safe (and not let it be on the whims and fancies of founders/investors who often have ditched them).
Is Snapdeal paying for others sins? Or adding to it?
Does the seller/vendor/investor/employee ecosystem trust founders anymore?
If you are a seller selling to these ecommerce companies, what's your 'gut feel' about doing business with these companies?
(1): Nobody wants a repeat of AskMe. In case of Snapdeal, the company has denied.
(2) There are allegations of Nikesh Arora taking kickbacks, though Softbank has refused (link)
(3) Nobody wants a repeat of redBus or Housing Link