Company Review By:

Zeeshan Ahmad
15C16

Company Name :
snapdeal.com
Profile

Type
Founded
Head quarters
Area served
Founders
Key people
Industry
Services

Online market place

2010
New delhi ,india
India
Kunal Bahl & Rohit Bansal
Kunal Bahl & Rohit Bansal
Internet online retailing
E-commerce
cont..

Employee
2000+
Slaogans
Bachate raho! , super deals
Website
www.snapdeal.com
Type of site
Online shopping
Users
20+million users
Available in
English, Tamil, Hindi
Launched
2010, 6yrs ago
Current status Online

HISTORY

Snapdeal is the fastest growing e-commerce

company in India .Snapdeal.com was started in
February 2010, as a daily deal platform, but
later expanded into product retailing across
various categories. Snapdeal claims to have a
subscriber base of more than 20 million and
has a presence across 4000+ towns and cities.

Creators :Kunal Bahl & Rohit Bansal

Kunal Bahl a Wharton graduate as
part of the dual degree M&T
Engineering and Business program
at Penndecided to start a
business with his school friend
Rohit Bansal an alumnus of IIT
Delhi after a stint at
Microsoft; Rohit was with
CapitalOne.

Persons Involved in
foundation

How does snapdeal earns ?

Snapdeal gets the best offer possible from
the merchants from around 65 cities across
India and then deducts a small amount of
commission.
Snapdeal aims at showing at least 40-90%
off in the deals from what actually one has
to pay. Depending upon how good the offer
is, Snapdeal deducts their commission
starting from Rs. 99 going up to Rs. 299

STP

Segment

Internet users

Target Group

Internet users relying on

internet for shopping
and other transactions

Positioning

Positioned as best
advertising and
discount platform in
the market.

Strength

Constant innovations and good branding

Vast network of retailers across nation

Excellent service through convenient processes

Wide range of deals and transactions to choose

from

Lots of awards and recognition as best start ups,

e-commerce etc

Weakness

Services not available in all cities.

Dependence on internet only.

Small time entrants entering into market.

share end up as competition.

Opportunity

The markets devoid of internet.

Customers reluctant in shopping online can

be persuaded.

Partnerships with bigger corporate houses

for bulk selling.

Threats

Can be subjected to frauds.

Risk of being involved into selling of illegal

entities.

Newly emerging competitive online

shopping portals.

Corporate Social
Responsibility

Snapdeal has adopted a remote village in

India and enabled clean drinking water
facilities for its people by installing manual
pumps. To show their gratitude, the villages
residents have decided to rename their
village to Snapdeal.com Nagar located in
Muzaffar nagar district in uttar pradesh,
actually taking the company by surprise.

Social work done by

snapdeal

Snapdeal.com CEO Kunal Bahl tells the goal has

always been to build a socially responsible
organization, and that the decision to provide
clean drinking water for the village came from a
conversation with one of its 500 employees in the
hallways.

We honestly did something very simple didnt

even cost that much and installed 15 hand
pumps, which now enable clean water within a
distance of 50 meters for all the residents of the
village.

Fundings

In January 2011, Snapdeal received a funding of $12 million

from Nexus Venture Partners and Indo-US Venture Partners.
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.
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 Indo US Venture Partners.
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.

Cont..

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 $1million .

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.

Snapdeal received its 7th round of funding in Aug-2015

from Alibaba Group, Foxconn and SoftBank with
investments worth $500 million in fresh capital.

Business Result

In the year 2013-14 Snapdeal had said that it expected

revenues of about 600 crore (US$89 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 2500 crore (US$300 million) in the fiscal
year 2014-15 helped by its robust growth in the past two
years and the growing popularity of e-commerce in India.

In June 2015, Snapdeal announced that it had achieved the

milestone of 1000 sellers on its platform getting sales of over
Rs 1 crore

Snapdeal

Compare

COMPETITOR

Labour Issue

Snapdeal employees approached the

Labour Department in February 2016,
claiming that the company was firing them
and had forced 600 employees to resign in
the last one year.

After protests from Snapdeal employees,

Delhi Government ordered the Labour
Department to probe the allegations.

Controversy

Snapdeal faces flak for Amir Khans

statement.

Snapdeal faces controversy over buying

fake tweets.

Snapdeal does it again: Man order mobile

phones , gets stones in package.

Did you know

8 pairs of shoes sold every minute

10 mobile are sold every minute

1 in DSLRs sold online in India through

snapdeal

1saree sold every 12 second

1Refrigerator sold every 50 second

1Laptop sold in every 2 minutes

1 AC sold every minute through snapdeal.

Awards and recognition

eRetailer of the Year & Best Advertising

campaign of the year - Indian eRetail awards
2012 organized by Franchise India in Feb,2012.

Winner of Red Herring Asia Awards 2011.

E-commerce site of the year at WAT awards that

took place in Jan 2012, Mumbai.

Voted amongst the Buziest brands of India in

afaqs's annual buzz-making poll