Ecommerce marketplace Snapdeal has reportedly stopped the incentive programme for customers that it previously employed through affiliates. In Snapdeal’s case, this affiliate network comprised coupons, deal cashback channels, and blogs. The company pays commissions to affiliates based on the number of people who end up transacting on the marketplace.
As per media reports, the company informed its affiliate partners that it will not be able to pay for orders and additional installations of its mobile application routed through them, effective immediately.
Jasper Infotech Pvt. Ltd-owned Snapdeal, which was started in February 2010, by Kunal Bahl along with Rohit Bansal has come a long way since its launch. It claims to have an assortment of 65 Mn plus products across 1,000+ categories from over 125,000 regional, national, and international brands and retailers. It has over 300,000 sellers, and delivers to 6000+ cities and towns in India.
Related Article: Snapdeal Founders Pocketed $24 Mn In 2015; So Much For Salary Cuts
Snapdeal has, till now, raised about $1.76 Bn in 12 rounds of funding. The most recent one came in August 2016 from Luxembourg-based firm Clouse SA, that ploughed in $21 Mn.
According to the fillings with the ROC, the Snapdeal co-founders together own less than 6.5% share in the company. The company has been negotiating with existing investor SoftBank for more money. In November 2016, Softbank Group Corp, which has the highest holding in Snapdeal (about 32%) had marked down close to $555 Mn in two of its Indian investments, cab hailing firm Ola and ecommerce marketplace Snapdeal, as per its six monthly earnings report, ending September 2016.