E-commerce firm Snapdeal, operated by Jasper Infotech Pvt. Ltd, is planning to move out of its corporate office in Gurugram in a bid to tighten its purse strings, a financial daily reported on Wednesday.
The company will be exiting from its premises at ASF Towers, where it occupies 1.5 lakh sq ft, and ASF Centre, where it owned 3.3 lakh sq ft, The Economic Times reported citing two persons familiar with the development.
“Snapdeal is smart-sizing its operations and trimming some portion of the Gurugram headquarters. It might retain around 50% of the space,†one of the persons cited above told ET.
An email query sent to Snapdeal confirming the development did not elicit a response at the time of filing this report.
Snapdeal has been working towards reducing ballooning operational costs to check its widening losses. Losses at the e-tailer more than doubled to Rs 2,960 crore (around $436 million) for the financial year ended 31 March 2016. Consolidated loss widened to Rs 3,315 crore from Rs 1,328 crore in 2014-15.
Last month, Snapdeal laid off 500-600 employees across its marketplace and subsidiaries, mobile wallet FreeCharge and logistics wing Vulcan Express. The company’s founders also declared that they had decided to forego their salary, without specifying the period.
Earlier this month, Snapdeal was reportedly in talks with its existing investor Softbank to raise fresh funds, which could see its valuation fall below $3 billion.
On Tuesday, it was reported that SoftBank was pushing for a merger between Snapdeal and its rival Flipkart in what could be the biggest M&A deal in the Indian e-commerce sector.
Like this report? Sign up for our daily newsletter to get our top reports.
