Snapdeal

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Snapdeal.com
Type Private
Industry Internet
Founded 2010 (2010)[1]
Founders Kunal Bahal
Headquarters New Delhi, India
Area served India
Key people Kunal Bahl & Rohit Bansal
Services E-commerce
(Online shopping)
Employees 2000+[2]
Website www.snapdeal.com

Snapdeal.com is an online marketplace, headquartered in New Delhi, India. The company was started by Kunal Bahl, a Wharton graduate as part of the dual degree M&T Engineering and Business program at Penn, and Rohit Bansal, an alumnus of IIT Delhi in February 2010.[3]

History[edit]

Snapdeal.com was started in February 2010 as a daily deals platform inspired by Groupon.com but expanded in September 2011 to become an online marketplace.[4] Snapdeal has grown to become the largest online marketplace in India[5] offering an assortment of 4 million+ products across diverse categories from over 50,000 sellers, shipping to 4,000[6] towns and cities in India.

Funding[edit]

Snapdeal has received 6 rounds of funding:

  • Round 1: In January 2011, Snapdeal received a funding of $12 million from Nexus Venture Partners and Indo-US Venture Partners.
  • Round 2: In July 2011, the company raised a further $45 million from Bessemer Venture Partners, along with existing investors Nexus Venture Partners and Indo-US Venture Partners.
  • Round 3: Snapdeal then raised a 3rd round of funding worth $50 million from eBay and received participation from existing investors – i.e. Bessemer Venture Partners, Nexus Venture and IndoUS Venture Partners.[7]
  • Round 4: Snapdeal received its 4th round of funding of $133 million on Feb-2014. The 4th round of funding was led by eBay with all the current institutional investors, including Kalaari Capital, Nexus Venture Partners, Bessemer Venture Partners, Intel Capital and Saama Capital all participating.[8]
  • Round 5: Snapdeal received its 5th round of funding of $105 million in May-2014. The 5th round included investments by Blackrock, Temasek Holdings, PremjiInvest and others.[9] The round valued SnapDeal at $1,000,000,000.[10]
  • Round 6: Snapdeal received its 6th round of funding in Oct-2014 from Softbank with investments worth $627 million in fresh capital.This makes SoftBank the largest investor in Snapdeal.[11]

Acquisitions[edit]

  • In June 2010, Snapdeal acquired Bangalore-based group buying site, Grabbon.com.[12]
  • In April 2012, Snapdeal acquired esportsbuy.com, an online sports goods retailer based out of Delhi.[13][14]
  • In May 2013, Snapdeal acquired Shopo.in, an online marketplace for Indian handicraft products.[15]
  • In April 2014, Snapdeal acquired fashion products discovery site, Doozton.com.[16]
  • In December 2014, Snapdeal acquired gifting recommendation site, Wishpicker.com.[17]

Business results[edit]

In the year 2012-13 Snapdeal had said that it expected revenues of about INR600 crore (US$97 million). Betting big on the growth of mobile commerce, Kunal Bahl, the CEO, said at the time that 15-20 per cent of the sales on Snapdeal came through m-commerce. Snapdeal.com expected the total sale of products traded on its platform to cross INR2000 crore (US$320 million) in the fiscal year 2013-14 helped by its robust growth in the past two years and the growing popularity of e-commerce in India.[18] In June 2014, Snapdeal announced that it had achieved the milestone of 1000 sellers on its plarform getting sales of over Rs 1 crore.[19]

Awards and recognition[edit]

  • eRetailer of the Year & Best Advertising campaign of the year - Indian eRetail awards 2012 organized by Franchise India in Feb,2012.[20]
  • Winner of Red Herring Asia Awards 2011.[21]
  • E-commerce site of the year at WAT awards that took place in Jan 2012, Mumbai.[22]
  • Hottest Internet Companies of the year at the premier edition of the 'Young Turks Awards' organized by Mercedes Benz and CNBC-TV 18 in New Delhi - Jan,2012.[23]
  • Rated the #1 e-commerce site in India, in terms of traction by Dataquest/Sapient E-commerce Survey 2011.[24]
  • Voted amongst the Buziest brands of India in afaqs's annual buzz-making poll.[25]
  • Rated the Cheapest Online Mobile Store for November 2013, in a study conducted by Zoutons.com.[26]

Trivia[edit]

  • In June 2011, Shiv Nagar, a village located in Muzaffarnagar district in Uttar Pradesh State, India, named after the Hindu god Shiva, became SnapDeal.com Nagar (nagar means town), after Snapdeal had installed 15 hand pumps, so villagers no longer have to walk for miles to fetch drinking water. There was no source of potable water in the village before. The villagers voted to name their hamlet after Snapdeal to express their gratitude.[27][28]

Criticism[edit]

Savings Day Sales[edit]

Snapdeal has been criticized for failing to deliver big discounts and speedy deliveries on its Savings Day sale held on 11 November 2014.[29]

References[edit]

  1. ^ Chakraborty, Alokananda (18 July 2014). "Lunch with BS: Sachin Bansal". Business Standard Ltd. Retrieved 16 November 2014. 
  2. ^ Chandran, Krishna. "Snapdeal Launchpad for product innovators and inventors". http://dreamweaverdiaries.in/. Dream Weaver Diaries. Retrieved 16 November 2014. 
  3. ^ Gooptu, Biswarup (28 February 2014). "Snapdeal co-founder Kunal Bahl: A rising star of India's e-commerce space". The Economic Times. Retrieved 16 November 2014. 
  4. ^ Agrawal, Shrija; Rai, Anand. "We should do a billion dollar in gross merchandise value by 2015: Snapdeal’s Kunal Bahl". http://techcircle.vccircle.com/. Retrieved 16 November 2014. 
  5. ^ Bhattacharjee, Nivedita; PM, Indulal. "Japan's SoftBank kicks off $10 billion India online spree, buys stake in Snapdeal". Reuters. Retrieved 16 November 2014. 
  6. ^ http://www.business-standard.com/article/companies/penetration-logistics-drive-snapdeal-s-push-113092000034_1.html
  7. ^ http://www.nextbigwhat.com/ebay-invests-in-snapdeal-297/
  8. ^ "eBay increases stake in Snapdeal, invests $134 million". The Times Of India. 27 February 2014. 
  9. ^ http://www.vccircle.com/news/technology/2014/05/21/snapdeal-raises-100m-fresh-funding-blackrock-temasek-premjiinvest-others
  10. ^ PrivCo (May 2014). "SnapDeal Receives Venture Capital Investment From Temasek Holdings Pte Ltd., BlackRock Kelso Capital, Myriad Group AG, And Others.". 
  11. ^ "SoftBank becomes largest investor in Snapdeal", Affairscloud" , 28 October 2014.
  12. ^ 29 June 2010 (29 June 2010). "Jasper announces acquisition of Grabbon". The Financial Express. 
  13. ^ 4 April 2012 (4 April 2012). "Snapdeal acquires Esportsbuy.com". Economic Times. 
  14. ^ 4 April 2012 (4 April 2012). "Snapdeal buys Esportsbuy.com". The Hindu Business Line. 
  15. ^ 1 June 2013 (1 June 2013). "Snapdeal acquires Shopo.in". Times of India. 
  16. ^ 11 December 2014 (11 December 2014). "Snapdeal acquires Doozton.com". Economic Times. 
  17. ^ 11 December 2014 (11 December 2014). "Snapdeal acquires Wishpicker.com". Economic Times. 
  18. ^ "Snapdeal expects its online sales to cross Rs 2,000 cr in FY14". The Times Of India. 31 March 2013. 
  19. ^ "Snapdeal crosses milestone of 1,000 sellers getting sales of over Rs 1 crore". IndianWeb2. 16 June 2014. 
  20. ^ Saturday, 25 February 2012 (25 February 2012). "Snapdeal.com awarded eRetailer of the year; Also wins Best Advertising campaign of the year award". India PR Wire. 
  21. ^ "2011 RED HERRING TOP 100 ASIA". RED HERRING. 
  22. ^ 21 January 2012 (21 January 2012). "And The Winners Of WAT Awards 2012 Are……Congratulations To All!". WAT Blog.com. 
  23. ^ 11 January 2012 (11 January 2012). "CNBC-TV18 Young Turks Awards Premier Edition". Dish Tracking. 
  24. ^ Tuesday, 10 May 2011 (10 May 2014). "Digital Marketing: Snapdeal―An Entrepreneurial Saga". CouponLay. 
  25. ^ 27 February 2012 (27 February 2012). "7th Edition of India's Buzziest Brands". Afaqs. 
  26. ^ Tuesday, 26 November 2013 (26 November 2013). "Comparative Study: Mobile Prices Indian E-Commerce Stores November 2013". Zoutons.com. 
  27. ^ "Indian village named for a god now honors SnapDeal.com". www.cnn.com. Cable News Network. Retrieved 24 October 2014. 
  28. ^ "Snapdeal adopts village in Uttar Pradesh and residents renames village to Snapdeal.com". economictimes.indiatimes.com. Bennett, Coleman & Co. Ltd. Retrieved 24 October 2014. 
  29. ^ Snapdeal, Amazon sales flop: Samsung, LG, Sony may be partly responsible

External links[edit]