Initial Journey of Snapdeal
The website that started off as a flash deals website is now in one of the top spots among other e-commerce platforms. It is also one of the most funded start-ups of India receiving around 1.78 billion in total starting from 2010. You know how successful it is but do you know the story behind its success?
Snapdeal was launched at a nascent stage in 2010 by the co founders Kunal Bahl and Rohit Bansal. At present Snapdeal offers more than 60 million products across various categories including electronic devices, home & living, fashion, books, music, fitness, etc. It caters to over 6000 cities and towns in India.
The initial journey towards success:
The venture took off after they met their first investor Vani Kola in 2010. For the first few months, it faced a lot of ups and downs but due the diligent efforts of the team, it started providing better service, and more people started signing up to Snapdeal.
In 2011 it received a huge funding of $12 million from Nexus Venture Partners and Indo-US Venture Partners. Later that year they received a funding of $45 million from Bessemer Venture Partners. Snapdeal had also received the Red Herring Asia Awards in 2011 for being the leading e-commerce company
After these initial funding rounds, Snapdeal managed to raise a 3rd round of funding of about $50 million from eBay. Slowly throughout these 8 years they managed to raise $1.78 billion- becoming one of the highest funded startups in India. It is one of the fastest growing startups with a year on year growth of 600%.
When asked in an interview- “With Amazon and Flipkart pouring so many resources and money into the market, how does Snapdeal fit into the picture?”
Rohit Bansal’s reply was: “Businesses built by other companies are inspired by the US or the western markets, where the audience is much more homogeneous, richer, and buys a certain type of product. However, GDP per capita in India is much lower, and a large number of Indians coming online do not have that level of income. Hence, the goods, the price range, and the user experience of the existing platforms are not very relatable to the local audience.
Snapdeal fills this gap by bringing online what users would otherwise purchase offline – products that are value-for-money, of a high-quality selection but not necessarily branded, and delivered in an engaging way.
Unlike the rest, a lot of Indian users are not trying to save time. They’re trying to save money, even if it entails spending more time on a shopping app. Snapdeal tailors itself to this audience, in a manner that is very engaging and seamless. Users can browse through suggested products even if they don’t know what they’re looking for, and are able to play games on the app to win coupons.”
The founders and the Snapdeal team were always clear on the goals of their company which helped them achieve a lot, even in the presence of e-commerce giants like Amazon and Flipkart.
Moreover, Snapdeal has been evolving rapidly with advanced shopping features at present in the application that keeps up with the changing demands of the customers. Hence the user base is increasing massively every day!
So are you an entrepreneur searching for inspiration to open your own company?
Well I am sure the story of this startup will be a source of motivation for your entrepreneurial advancements. If you have a business idea, we would love to hear from you in Happython 2020!
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Event date: 13th December
Last date for registration: 5th December
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