Snapdeal denies rumors of deal talks with rivals Flipkart, Paytm

E-commerce marketplace Snapdeal on Wednesday firmly denied that it was in talks to sell the firm, after Mint newspaper reported the company was in talks with domestic rivals Paytm and Flipkart for a potential sale.

"Your information is incorrect and without basis. We are making decisive progress in our journey towards profitability and all our efforts are aligned in this direction", a Snapdeal spokesperson said in an email to Mint.

Japan's Softbank Group, an investor in Snapdeal, had been said to be leading the sale talks, and the deal could value the online retailer at less than the total equity raised by parent Jasper Infotech Pvt Ltd, the newspaper reported.

In a bid to turn a profit in the intensely competitive market, which is dominated by homegrown Flipkart and U.S. internet giant Amazon, Snapdeal said last month that it would lay off 600 employees and its founders would forego their salaries.

Snapdeal reported a loss of 29.6 billion rupees ($14.93 million) in the financial year to March 31, 2016, according to regulatory filings.

Indian e-commerce, which is one of the world's fastest growing internet services market, has largely been driven by steep discounts, resulting in investor markdowns due to concerns about profitability.