Snapdeal founders to take 100% pay cut; admit errors in strategy

Snapdeal founders Kunal Bahl and Rohit Bansal have decided to take a 100% pay cut while acknowledging that they made an error in the execution strategy of the company by diversifying without getting the foundation right. They also said that the company would be downsizing as part of its attempts to turn profitable.

In an e-mail sent to all employees on Wednesday, the founders said that while the company had a phenomenal journey over the last few years, they erred in the execution and even started building a team size that was much larger than what was



required.

“Has our company and industry been going through a troubled time? Absolutely. Did we make errors in our execution? No doubt about that,” stated the mail. The Hindu has a copy of the mail.

“We started growing our business much before the right economic model and market fit was figured out. We also started diversifying and starting new projects while we still hadn’t perfected the first or made it profitable. We started building our team and capabilities for a much larger size of business than what was required with the present scale,” it added.