How easy have our lives been ever since e-commerce portals came into action! One of these, Snapdeal makes online shopping a boom with its coupons and vouchers for the consumers. Founded by Kunal Bahl and Rohit Bansal in February 2010, Snapdeal is an Indian e-commerce company based out of New Delhi. Snapdeal has its own niche in the sphere of e-commerce in India that it has set with its impressive range of discounts and product categories.
Snapdeal - Company Highlights
| Startup Name | Snapdeal |
|---|---|
| Headquarter | Gurgaon, India |
| Sector | E-commerce |
| Founders | Kunal Bahl, Rohit Bansal |
| Founded | 2010 |
| Parent Organization | Jasper Infotech Private Limited |
| Website | snapdeal.com |
About Snapdeal and How it Works
Snapdeal - Target Market Size
Founders of Snapdeal and team
How was Snapdeal Started?
Snapdeal - Startup Launch
Snapdeal - Business Model and Revenue Model
Snapdeal - Name, Tagline, and Logo
Snapdeal - Competitors
Snapdeal - Funding and Investors
Snapdeal - Acquisitions
Snapdeal - Growth
Check out: Gurgaon Based Startups Dominating The Entrepreneurial Sector in India
About Snapdeal and How it Works
India’s Ultimate Online Shopping Site Snapdeal’s vision is to create India’s most reliable and frictionless commerce ecosystem that creates life-changing experiences for buyers and sellers. It has the widest assortment of 35 million plus products across 800 plus diverse categories from over 125,000 regional, national, and international brands and retailers. With millions of users and more than 300,000 sellers, Snapdeal is the online shopping site for Internet users across the country, delivering to 6000+ cities and towns in India.
The trend of online shopping is becoming a household name and so is Snapdeal. Snapdeal is the preferred choice of hundreds of thousands of online shoppers given its mammoth assortment of 15 million+ products, quick delivery even to the remotest corners of the country, and daily deals, discounts & offers to make products available at slashed down prices to our valuable customers.
Shopping online particularly at Snapdeal is a child’s play; all you need is a mobile phone or laptop or tablet with an Internet connection to get started. Simply log into Snapdeal.com and browse through the wide assortment of products across categories. Once you have zeroed in on your favorite products, simply place the order by filling in the details; the products will be delivered right at your doorstep.
Thanks to easy-to-understand, flexible policies and SD Advisors to help sellers at each step, anyone from a manufacturer to wholesaler to retailer can sell on Snapdeal.
You can shop for your favorite products at Snapdeal even on the go using the Snapdeal App. Available for both Android and Apple users, the app is quick, user-friendly, and enables shoppers to buy products with a breeze. What's more, get timely notifications on your phone or tablet so that you don't miss amazing deals and offers. Download the app right now and experience how fun it is to shop on your mobile!
Snapdeal - Target Market Size
With an overall market share of 1.7 Trillion USD, the retail sector is one of the biggest contributors to the economy across the globe. when it comes to India, the e-commerce sector has even more scope of expansion. The Indian e-commerce market is expected to grow to touch around 33 billion USD.
Founders of Snapdeal and team
Kunal Bahl and Rohit Bansal are the brilliant minds behind this mega e-commerce giant.
They started as high school friends and then went on to become business partners when they launched Snapdeal. Believe it or not, together, this duo walked away from a merger deal offered by Flipkart and envisioned and adopted an evaluated focus on the 400 million value-conscious Indian consumers.
- Kunal Bahl, Founder, and CEO is an investor and entrepreneur who aims to create Impact through entrepreneurship. He has graduated from The Wharton School in Marketing and Operations Strategy. With being the brains behind Snapdeal, he is also an investor at Titan Capital.
- Rohit Bansal, the Co-Founder, is an IIT Delhi graduate with impressive skills in Team Management and Business Development.
Also read: Kunal Bahl: The Architect Behind Snapdeal's Success
How was Snapdeal Started?
Back in 2010, when the founders, Kunal Bahl and Rohit Bansal wanted to start their venture, they came up with an offline couponing business which was named MoneySaver. This company sold 15000 coupons in three months and that’s exactly when it was time to notch this business to a level up. And hence, Snapdeal was founded on 4 February 2010.
When it launched, it was primarily a daily deals platform, and then later in 2011, it expanded to become an online marketplace. Since then, Snapdeal has grown to become one of the largest online marketplaces in India.
Snapdeal - Startup Launch
"After the launch, it was kind of a bumpy ride at first. Mistakes were made, but lessons were learned. It is this kind of hard work and diligent attempt to offer the best to the customers that gave Snapdeal its initial success.”, said Kunal Bahl, founder and CEO of Snapdeal.
The first big decision of this founder duo came in 2011 when inspired by the success of Alibaba, they wanted to create something on similar lines. Hence they forfeited the current idea of deals platform and went all in creating Snapdeal as one of the top online shopping spaces in the country. Clearly, for the founders, it was a make or break decision. This was primarily because of the fact that Snapdeal had a tremendous market share in the deals business at that point in time. Hence starting something new would have been very risky. Also, during this time, eBay was the only marketplace in India.
So ideally, this was a decision that was not for the short term and was taken keeping a very long-term picture in mind. It took some convincing for Rohit Bahl to gain the nod on the board and that’s when the present form of Snapdeal that we use and see today in the form of e-commerce portal took shape.
In March 2015, Snapdeal brought Bollywood’s famous actor, Aamir Khan for the promotion of its website in India. Also, in November 2019, the company joined the International Trademark Association (INTA) to support the protection of intellectual property on online marketplaces.
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Snapdeal - Business Model and Revenue Model
Snapdeal operates the digital B2C (Business to customer) marketplace, which allows third-party sellers to sell their products on the website directly to customers. The company operates a portfolio business model; the company at its core operates a matchmaking business model, where it connects online sellers directly to online buyers.
It also offers complimentary products such as delivery and logistical support to businesses to help encourage the use of its matchmaking platform.
As of today, Snapdeal is valued at a billion dollars and that very fact is the testament of the stellar vision the founders had in the beginning for the company.
Snapdeal - Name, Tagline, and Logo
Snapdeal usually comes up with a new tagline every year just before the festive season kicks in. In 2015, it hired Bollywood actor Aamir Khan to reposition and promote the brand, with the message Dil Ki Deal (a deal that tugs at your heartstrings). In 2014, Snapdeal pushed the message of discounts and savings with Bachaate Raho (keep saving).
Snapdeal, run by Jasper Infotech Pvt. Ltd has unveiled a new logo and tagline, Unbox Zindagi (or Unbox Life), as it seeks to position itself differently in the hyper-competitive e-commerce business.
As part of the makeover, the logo will now be in vermello (a shade of red) instead of the existing blue and red combination.
Also read: Flipkart - India's Leading E-Commerce Marketplace
Snapdeal - Competitors
Snapdeal directly competes with Amazon, Flipkart, Myntra, Shopclues, Club Factory and many such companies that have gone on to take a great market standing in the online shopping sphere.
Snapdeal - Funding and Investors
Snapdeal has raised a total of $1.8 billion in funding over 13 rounds. Here is a list of all the funding rounds of Snapdeal:
| Date | Stage | Amount | Investors |
|---|---|---|---|
| January 2011 | Series A | $12 million | IndoUS Venture Partners, Nexus Venture Partners |
| September 2011 | Series B | $40 million | Bessemer Venture Partners, IndoUS Venture Partners, Nexus Venture Partners |
| April 2013 | Series C | $50 million | eBay, Recruit Holdings, Intel Capital, ru-Net, Saama Capital |
| August 2013 | Venture Round | $75 million | SoftBank Capital |
| February 2014 | Series D | $133.7 million | eBay |
| May 2014 | Series E | $100 million | BlackRock, Myriad |
| August 2014 | Venture Round | - | Ratan Tata |
| October 2014 | Private Equity | $627 million | SoftBank Telecom Corp |
| August 2015 | Private Equity | $500 million | Alibaba Group, Foxconn Technology Group, SoftBank Telecom Corp |
| February 2016 | Private Equity | $200 million | Ontario Teachers' Pension Plan, Iron Pillar, Brother Fortune Apparel |
| August 2016 | Secondary Market | $21 million | Clouse SA |
| May 2017 | Venture Round | $17 million | Nexus Venture Partners, Kunal Bahl, Rohit Bansal |
| July 2019 | Venture Round | - | Anand Piramal |
Snapdeal has partnered with several global investors such as SoftBank, BlackRock, Temasek, Foxconn, Alibaba, eBay Inc., Premji Invest, Intel Capital, Bessemer Venture Partners, Mr. Ratan Tata, among others.
Relevant read: Mukesh Ambani Is All Set To Revolutionize The E-Commerce Industry with JioMart
Snapdeal - Acquisitions
Snapdeal, over all these years, has acquired 12 business enterprises.
| Acquired | Date |
|---|---|
| Grabbon | June 2010 |
| Esportsbuy | April 2012 |
| Shopo | May 2013 |
| Doozton | April 2014 |
| Wishpicker | December 2014 |
| Exclusively | Feb 2015 |
| RupeePower | May 2015 |
| MartMobi Technologies | May 2015 |
| Fashiate | August 2015 |
| Reduce Data | September 2015 |
| TargetingMantra | May 2016 |
| GoJavas | July 2016 |
- In June 2010, Snapdeal acquired Grabbon.com, Bengaluru-based group buying website, for an undisclosed amount.
- In April 2012, it was a Delhi-based online sports goods retailer known as esportsbuy.com, which was acquired by Snapdeal.
- In May 2013, Shopo.in, which is an online marketplace for Indian handicraft products was acquired by Snapdeal.
- In April 2014, SnapDeal acquired Doozton.com for an undisclosed amount. It was a fashion product discovery technology platform
- In December 2014, Wishpicker.com which was a tech platform that uses machine learning to deliver recommendations for gift purchases was acquired by Snapdeal for an undisclosed amount.
- And then came the year of acquisitions for Snapdeal. It made the majority of these in 2015. In January, Snapdeal acquired a stake in the product comparison website, Smartprix.com. This was followed by the acquisition of luxury fashion products discovery site, Exclusively.in. In March, this e-commerce portal acquired a 20% stake in logistics service company Gojavas.com. And that was not it, two more acquisitions in the same month that were made by Snapdeal were Unicommerce.com, an eCommerce management software and fulfillment solution provider, and RupeePower, a digital platform for financial transactions. In April 2015, FreeCharge.com was acquired by Snapdeal. Reduce Data, a Programmatic display advertising platform was acquired by the company in September2015.
- In May 2016, Targeting Mantra was acquired by Snapdeal for an undisclosed amount.
- And its most recent acquisition was in July 2016, when Snapdeal acquired GoJavas with a 49% stake in the firm.
Snapdeal - Growth
Jasper Infotech, the parent company that owns and operates this e-commerce portal, posted consolidated revenue of INR 925 crore in FY19, compared to 2018 when the revenue stood at just INR 536 crore. Also, Snapdeal posted consolidated losses of INR 186 crore in 2019, as compared to INR 611 in the previous financial year.
- More than 50,000 registered sellers sell on the portal.
- More than 5 million products are sold on the platform.
- It hosts close to 200 million listings.
- Its year on year growth is almost 600%.
- Snapdeal is valued as a billion-dollar company.
Snapdeal’s phenomenal growth in this short span has been a remarkable journey for the founders and the startup community. Also, when eBay, one of the giants in this space invested in Snapdeal, they brought the immense experience to the table.
Link : https://startuptalky.com/snapdeal-success-story/
Author :- Rishabh Rathi
June 03, 2020 at 11:39AM
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