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Priyank Agrawal asked a question

Is it wise for Snapdeal founders to sell FreeCharge and Vulcan Express ?

We know Snapdeal is having a tough time raising another round and it is also having markdowns by its leading investors. 
In such adverse conditions what could be the outcomes of selling or not selling and what would you do in such a condition?

Source: http://www.financialexpress.com/industry/after-paypal-deal-falls-through-snapdeal-looks-to-sell-freecharge-to-paytm-payu-for-500-mn/551674/ 

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Nikunj Verma Building CutShort brick by brick

The quoted article is a bit ambiguous. It seems to suggest that Snapdeal is not looking to sell Freecharge completely, but just wants to divest a smaller 25% stake for an estimated deal valuation of $500mn. This means it is valuing Freecharge at $2B, which sounds weird since Snapdeal itselft is trying to raise money at $3B to $4B valuation: http://techcircle.vccircle.com/2017/01/25/snapdeal-in-talks-with-softbank-to-raise-funds-at-lower-valuation/. Something doesn't add up in this article.

 

That said, keeping Freecharge would have been a smarter decision for Snapdeal. Given the uptick in the digital payments space it could definitely be a great hedge against dwindling fortunes in the ecomm space.

 

But then I think for Snapdeal,  it no longer is about what's smart and what's not. It's about survival right now and they will do whatever it takes to stay afloat - layoffs, stake sales, down rounds, etc. And they gotta do it fast - clock is already turning fast for them in my view.

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