The success story of SNAPDEAL.
( all the facts )
If we see some of the major success stories of entrepreneurs then the story of Snapdeal should definitely be in the top 10.
So we will begin with an overview of the company /-
Snapdeal is an e-commerce company (Indian), which is basically based in Delhi. Snapdeal was started with the combined efforts, hard work and dedication of two individuals namely
Faces behind Success story of Snapdeal
On 4th of February this company (Snapdeal) started its operations, and eventually, it got its phase of major growth which was September 2011 and became an online marketplace.
Since then Snapdeal has continued to grow and has become one of the largest online marketplaces in the nation, with an offering of about 10 million products from 1 lakh plus sellers. the area covered by the company is also very large, 5,000 towns and cities to be exact.
But it mainly came in sight of the general public when the company hired Mr. Amir Khan for its advertisements, which got a big success.
Initial Investments –
Initially, investments were made by Vani Kola‘s firm but it did not happen at the first meeting, in fact, the first meeting went pretty bad. It was only after some time that Vani Kola’s venture capital firm decided to invest in Snapdeal and realized the earning potential of that company.
In early 2011, the company received funds of about 12 million from Nexus Venture Partners and Indo-US Venture Partners.
Afterwards, in that same year, Snapdeal also managed to raise additional 45 million from Bessemer Venture Partners
Snapdeal did not stop and kept on receiving several fundings in future
- 50 million from E-bay
- 133 million from E-bay with investors like Kalaari Capital, Nexus Venture Partners
- 105 million from Blackrock, Temasek Holdings etc
Recently, Snapdeal has raised an additional $627 million from SoftBank
Major Shift –
After seeing the huge success of Alibaba ( an online portal ), company’s founder Kunal and Rohit both decided to shift the whole business model. Hence, a new online marketplace was open.
To take this type of decision takes a lot of gut, it was obviously a make or break decision at that time. Also, the investors were completely shocked because at that time there was only 1 online marketplace named E-bay.
Success journey of Snapdeal –
The extent to which the company has been successful in its operations can be estimated with the fact that it has more than 1 lakh sellers and a wide and huge variety of goods in excess of 10 million.
Moreover, the growth and success that the company has received has led to increasing the number of online shoppers and has also helped to create a new industry out of it.
Also when the king of this segment E-bay decided to invest in Snapdeal, along with the investment they also brought a lot of experience which eventually turned out to be a great asset to the company..
However, currently Snapdeal is facing a number of issues majorly due to tough competition from Flipkart ( success story of Flipkart ) and Amazon.
Recently the news of Snapdeal’s merger has been floating in the industry due to its decreasing profits, the merger has been speculated to be with one of the major rivals either Flipkart or Amazon. But the officials of Snapdeal had denied such pieces of information.
Also, reports have shown a sign that Softbank ( a major investor in Snapdeal ) wants the company to accept the merger with the big giant Flipkart.
You can also check out the success story of Flipkart –