Ecommerce startups are facing tough time thanks to Amazon, Flipkart, and Snapdeal. I was surprised to hear that Snapdeal moves their Mumbai team to a co-working hub in Andheri West. Previously they were working out of a 200 seat capacity office in Malad suburb but now they are using 90 seats of Awfis Space Solutions.
Hearing this news the first thought that comes to our mind is, how deep in losses is Snapdeal? But the first thought that came to my mind was, well done Snapdeal you’re on a mission to save investors bucks. At the end of the day even though Snapdeal is VC backed, but it is still a startup and this move of their shows that they are smartly utilizing investor funds. Read Startup News.
Snapdeal recently spent Rs 200 crores on the new branding project. This move was called as “Rs 200 crore painting job to Titanic” by Mahesh Murthy, Investor. I feel after spending crores of VC funds it is actually a good move to save bucks. This move will also inspire other startups that are growing to think twice before spending investor money.
My thoughts and appreciation to Snapdeal was all a disaster when I read Snapdeal’s statement regarding this move. They said in an email to media that this move was done not to save costs. It was done only to make office closer by transport to all their employees. Provide employees more amenities that were not provided in the previous office space.
Typically a startup saves more than 70% expenses if they work out of a co-working space. Currently this is what I am doing, running as lean as possible even though I have investor funds to spend on a great looking office. Well now I take my thoughts back about Snapdeal’s move, but if the money saving move was true then Snapdeal would have made an awesome decision. Read more news on Snapdeal.
Are you intrested to become guest author and write about business, Leadership or finance? Register and start Contributing your knowledge and experience.