After acquiring one of India’s biggest start-ups, New Delhi-based online marketplace Snapdeal is all set to dominate India’s $3 billion eCommerce industry.
It is being said that Snapdeal is all hands on deck for 10 more investments by the end of this financial year.
This is to stock up on its rivals Amazon and Flipkart. Since its launch in 2010, Snapdeal has been in a wear or tear war with its arch rivals.
Till date, the company has bought 8 startups and has secured a peak spot in the list of India’s top startup merges and acquisition leader board. In the last one year, Snapdeal has raised nearly $1 billion (Rs. 6,300 crore approx) and this has helped it in various acquisitions.
The marketplace has a unique 60-40 business model, where 60% of the funds are utilised in uplifting technology front and acquisitions and the rest 40% for other administrational purposes. With an intention to create a complete eCommerce ecosystem, Snapdeal typically targets buyout opportunities largely in mobile and data analytics space.
As per Kunal Bahl, Co-Founder, Snapdeal, the company may end up with 10 acquisitions by the end of this year being there that is appealing and consumer-friendly. The parent company Jasper Infotech, which owns and operates Snapdeal.com recently acquired a well-known payment and mobile recharge startup Freecharge in a cash and stock deal worth $450 million. This was one of India’s most expensive acquisitions in the consumer Internet sector.
Snapdeal kicked off this fiscal year with securing majority stakes in RupeePower.com, a digital service platform and also bought majority stakes in logistics venture GoJavas to scale its delivery work. Snapdeal is ramping up its hiring and the goal is to bring 50 engineers on board for FreeCharge in the next two months, all in Bengaluru.
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