Snapdeal one of the most trusted e- commerce website in New Delhi, India. Mr. Kunal Bahl started the company & currently the site has 275,000 sellers, 30 million-plus products, and a reach of 6,000 towns. So it’s a real wonder to see how a small start-up established in 2010 became a company worth billions.
Fastest growing e-commerce company Snapdeal was not a result of just days. It took months, years of hard work and brilliant thinking to make it possible. Just like Alibaba it’s a success story within a little span of time.
It was not as easy and as royal as it sounds now. Mr. Bhal himself admitted it was a result of hard failures and a lot of mistakes. Beginning with his friend Rohit Bansal and making it this huge needs a lot of guts to do so.
Firstly, Snapdeal started off as an e-coupon company, on the lines of the US giant Groupon, but after a year of waiting outside restaurants and convincing them to come on board, Bahl and his partner decided that their company was losing track.And then this happened.
It was a visit to China in 2011 where Bahl and his friend Rohit learnt about the e-commerce boom, specifically with the focus on Alibaba, the biggest e-commerce company in the world. That Alibaba became an inspiration for Snapdeal, thinking of big and putting a lot of efforts to make it possible anyway worked for them.
For a startup like snapdeal, they needed fundings and luckily they even managed to do so. So, here’s the listing of all the fundings.
Snapdeal has received seven 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 the 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.
- 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.
- 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. The round valued Snapdeal at $1,000,000,000.
- Round 6: Snapdeal received its 6th round of funding in Oct-2014 from Softbank with investments worth $647 million in fresh capital.This makes SoftBank the largest investor in Snapdeal.
- Round 7: Snapdeal received its 7th round of funding in Aug-2015 from Alibaba Group, Foxconn, and SoftBank with investments worth $500 million in fresh capital.
- Round 11: One of the world’s largest pension funds, Ontario Teachers’ Pension Plan, and Singapore-based investment entity Brother Fortune Apparel have led the 11th round of funding in online marketplace player Snapdeal. The latest investment is $200 million (Rs 1,367.6 crore) in Jasper Infotech-owned company.
After funding, they needs to aquire small start ups to make it all in their own way and here’s listing of those.
- In June 2011, Snapdeal acquired Bangalore-based group buying site, Grabbon.com.
- In April 2012, Snapdeal acquired esportsbuy.com, an online sports goods retailer based out of Delhi.
- In May 2013, Snapdeal acquired Shopo.in, an online marketplace for Indian handicraft products.
- In April 2014, Snapdeal acquired fashion products discovery site, Doozton.com.
- In December 2014, Snapdeal acquired gifting recommendation site, Wishpicker.com.
- In January 2015, Snapdeal acquired a stake in product comparison website Smartprix.com.
- In February 2015, Snapdeal acquired luxury fashion products discovery site, Exclusively.in.
- In March 2015, Snapdeal acquired 20% stake in logistics service company Gojavas.com.It currently owns a 50% stake in GoJavas valued at $35 million.
- In March 2015, Snapdeal acquired ecommerce management software and fulfillment solution provider, Unicommerce.com .
- In March 2015, Snapdeal entered into the financial services marketplace by acquiring a majority stake of RupeePower which provides a digital platform for financial products to customers. Mr. Tejasvi Mohanram, the founder of RupeePower would continue to be the MD&CEO of the company.
- In April 2015, Snapdeal acquired mobile-payments company FreeCharge.com.
In September 2015, Snapdeal acquired Reduce Data, a programmatic display advertising platform.
There a lot of awards and recognitions received by Mr. Bhal and among those there are Winner of Red Herring Asia Awards 2011and also E-commerce site of the year at WAT awards that took place in Jan 2012, Mumbai.
The most recognise able was In June 2011. After Snapdeal had installed 15 hand pumps for drinking water. The villagers of Shiv Nagar elected thier village’s name as Snaodeal.com Nagar to express their gracefulness towards snapdeal.
Kunal Bahl latest news is the deal with Freecharge and has made many news headlines. And surprisingly Mr. Bhal succedd to make freecharge a really good wallet application. Its used for cab payments , recharging mobiles , DTH and several other ways.
It’s not a smooth story of success but they faced defame too while Bollywood Superstar Mr. Aamir Khan’s statement took on Indian Sentiments and as a worse result of that Snapdeal faced a lot as because of Aamir khan was the Brand ambassador of Snapdeal.
So, after all the journey of Mr.Bahl was successful though there was a bit of dark patch in the way. As it’s completely accepted “failure is the pillar of success” we are none to put any questions about this.
All the datas of fundings and acquistions are collected from wikipedia.