Snapdeal moves to larger office as merger talks with Flipkart in last leg

By Vijayakumar Pitchiah

  • 24 May 2017
Credit: Reuters

Even as its impending merger with rival Flipkart inches closer, Jasper Infotech Pvt. Ltd, which operates e-commerce firm Snapdeal, has shifted its registered office address to a newer and larger commercial space, documents with the Ministry of Corporate Affairs reveal.

Latest Registrar of Companies (RoC) filings by Snapdeal show that since May 9, the company has been operating out of a 5,200-square-foot property situated at Plot 68, Phase III, Okhla Industrial Estate, New Delhi. Snapdeal has drawn an initial lease of three years, for which it will pay Rs 4.75 lakh per month as rent, according to the terms of the lease agreement.

However, a rent receipt filed by Snapdeal showed that it paid Rs 1.82 lakh on May 12 for the month. It is not clear whether this is the actual rent amount or a sum paid on a pro rata basis.

Prior to this, Snapdeal’s registered office was a 2,000-square-foot property at Plot 201 in the same locality, where it was paying Rs 1.8 lakh per month. This lease agreement, which extended up to 2024, had a stipulated lock-in period until October 14 this year. In other words, Snapdeal could not terminate the lease agreement up to this period unless it paid the rent for the remainder of the unexpired period.

It is not clear what prompted the move. In March, The Economic Times reported that it will be exiting its corporate premises in Gurgaon as a measure to cut costs. Other media reports also suggested that Snapdeal has slashed 60% of the 4.5 lakh square feet office space it had taken on lease at AFS centre Gurgaon, and the company would be moving out of its Awfis co-working space in Mumbai. Snapdeal has offices in Bangalore as well.

A detailed e-mail questionnaire has been sent to Snapdeal, and the copy will be updated as and when the responses are received.

The Gurgaon-based e-commerce major has been hogging the media limelight primarily for its imminent merger with Flipkart, in what is being touted as the biggest M&A deal in the Indian e-commerce space. On Wednesday, Flipkart signed the term sheet and is all set to begin due diligence next week, even as the entire deal could take up to three months to be fully completed.

Separately, Snapdeal has been battling disputes with online sellers who have accused the e-commerce firm of fraud over delays and non-payment. The company has denied these claims, saying it has settled all dues. Besides, a Delhi court directed Snapdeal founders Kunal Bahl and Rohit Bansal last week to respond to the allegations of cheating with regard to the ideation of the marketplace model it currently operates.