Snapdeal is not pushing for any consolidation but it's for the investors to take that call.
A Snapdeal executive said the board about two weeks ago had approved a plan to turn profitable and identified a "small gap in funding." Any fundraising would be intended to strengthen its finances ahead of a planned listing, which sources say the company was trying to achieve within two years.
One of the sources who spoke to Reuters said Alibaba was already in early talks with Softbank, the biggest shareholder in Snapdeal, but was only interested in increasing its investment as long as management control goes to Paytm.
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