Snapdeal's galloping progress

14 Jun 2011
Snapdeal's galloping progress,The story of Snapdeal
  • Snapdeal was launched in 2010 on the model of Groupon, the world's largest online deals seller.
  • The revenues of the company had been growing at 100%, selling unused inventories. It took a 35% cut for any deal from the merchant.
  • Vinod Dham, a well-known silicon valley investor, along with Bazee.com co-founder, Suvir Sujan, had invested $12 million in the company.

A village named 'Snapdeal'

Fact
Information

In 2011, Shiv Nagar, a village in UP, was renamed as Snapdeal. com nagar after the company installed 15 hand pumps in the village.

Business model changed from coupons to e-commerce

26 Jan 2012
Business model of snapdeal
  • Within 2 years of its launch, Snapdeal changed from a group discounting website to one of the largest e-commerce sites in India.
  • Kunal Bahl, the company's CEO and co-founder said that deals could only serve as the entry point into the life of the customer.
  • Bahl stressed that Snapdeal's model was more customer centric than Groupon.

Snapdeal gets Rs 3,762 crore from SoftBank

28 Oct 2014
Snapdeal funding,Snapdeal funding from Softbank
  • Japan based internet and telecom giant SoftBank invested $627 million in Snapdeal.
  • The announcement came after SoftBank told about its plans to invest $10 billion in India, marking the country as 'its top priority'.
  • Snapdeal planned to use the amount to make acquisitions in the near-future.
  • Snapdeal was also planning to open a R&D centre in Bangalore.

Snapdeal grew 600% in 2014, says its CEO

1 Jan 2015
Snapdeal grew 600% in 2014
  • Snapdeal termed 2014 as a phenomenal year with 65% of the orders coming through mobile devices.
  • The Delhi based firm said that it emerged as one of the top five searched sites on the internet in the country in 2014.
  • Kunal Bahl, the company's CEO, said that Snapdeal had reached over 40 million people.
  • Snapdeal, as of this time, offered over 5 million products.

Snapdeal acquires FreeCharge for Rs 2,800 crore

8 Apr 2015
Snapdeal acquires FreeCharge
  • Snapdeal announced the buyout of FreeCharge for $400 million.
  • This is the largest acquisition by an Indian company. This overtakes Flipkart's $370 million acquisition of Myntra last year.
  • The combined entity will now have over 1 million mobile based transactions every day.
  • FreeCharge's user base in more than 20 million.

$500 million fresh funding for Snapdeal

19 Aug 2015
fresh funding for Snapdeal
  • Snapdeal raised $500 million in fresh funds from Chinese e-commerce firm Alibaba Group, Foxconn Technology Group and existing investor SoftBank Group.
  • This transaction would value Snapdeal at more than $5 billion.
  • FIH Mobile, a unit of Taiwan's Foxconn said it was buying a 4.27% stake for $200 million.
  • On the other hand, eBay - an existing investor, sold a portion of its stake.

Snapdeal raises new round; valuation up by $2 billion

15 Feb 2016
Snapdeal raises new round
  • Snapdeal has raised another $200 million or ₹1,367.6 crore, just seven months after it raised $500 million.
  • Ontario Teachers' Pension Plan, Brother Fortune Apparel and Iron Pillar were the major investors in this current round of funding.
  • With the latest round of funding the company has been valued above $6.5 billion, making it the second most valued ecommerce company in India after Flipkart.

Snapdeal to make profit in 2 years

07 Feb 2017
Snapdeal to make profit in 2 years
  • Snapdeal CEO Kunal Bahl said the company expects to become profitable in the next two years by cutting costs and boosting efficiency. The company recorded a loss of Rs.3,316 crore in FY16.
  • He said they were currently not looking to raise capital unless they would make an acquisition.
  • India's e-commerce market is touted to be one of the fastest growing in the world.

Oh Snap! Snapdeal to lay off 30% of its staff

11 Feb 2017
Oh Snap! Snapdeal to lay off 30% of its staff
  • Snapdeal is expected to lay off almost 30% of its staff, a move that will affect 5000 contractual workers and 1000 direct employees.
  • The downsizing will help in cutting costs drastically as the investment coming in has largely decreased.
  • Snapdeal has already begun with the laying off process.
  • In February 2016, Snapdeal had laid off approximately 200 employees.

Snapdeal goes into cash-conserve mode

17 Feb 2017
Snapdeal goes into cash-conserve mode
  • According to sources, Jasper Infotech Pvt. Ltd, which runs Snapdeal, is looking to secure new funds immediately.
  • Talks for a bridge round of funding with existing investor SoftBank were deferred because of differences over valuation, sending Snapdeal into a cash-conserve mode.
  • Jasper Infotech reportedly had Rs.1,100-1,200 crore cash left in the bank and Rs.300-400 crore at FreeCharge at the end of 2016.