2. Success Story
• In 2010, when Kunal Bahl and Rohit Bansal wanted to start their own business, they
chose an offline couponing business and named it MoneySaver. In three months only,
15000 coupons were sold and it was time to carry the business to the next level.
• They met investor Vani Kola but the first meeting did not worked well and after another
round of discussion, Vani Kola’s venture capital firm decided to invest in Snapdeal. And
it was the time for Snapdeal to take the journey to next stage. Initially started as an
offline business, Snapdeal went online in 2010. It was a jerky ride in the first few
months. Mistakes were made, but lessons were learnt too.
• It was a make or break decision. Snapdeal had a huge market share in the deals
business at that time and starting something new was very risky and this move
surprised the investors too. At that point of time, eBay was the only marketplace in
India.
• In just two years, the company went from scrapping their group coupon business and
starting an online marketplace to become a billion dollar company. Its year on year
growth is almost 600%.The average age of the workforce at Snapdeal is 25. Their values
– Innovation, Change, Openness, Honesty and Ownership drive them to press for
greater success. Great ideas might be important for a business, but it is the confident
implementation of those ideas and the right effort which are more important. It is
action and not mere thought that gives results.
3. Marketing plan
• When launched, Snapdeal was first of its kind. When it was establishing its niche in
the industry, websites like mydala.com and DealsandYou came as its core competitor.
• But working and focusing primarily on its goal, within 2 years, Snapdeal succeeded in
making 8-9 million user base. They entered in top 100 Indian websites in terms of
traffic.
• To further increase their members and traffic, they started referral programs on their
websites in which a user was paid a fixed amount for successful sign up of a friend
after receiving the referral link to use Snapdeal. Other than this, they started “Get
your first deal free” offer which got huge response from the user side. This led to the
strong brand value of Snapdeal. Side by side to these strategies, affiliate marketing
campaign was also working. They started cost per lead (CPL) campaign in which the
affiliates were paid Rs. 30 for each lead generated. But the problem was that the
margin was very less related to cost per acquisition that was very high and the
average revenue generated on each transaction was approx. Rs. 50-100.
• But Snapdeal knew how to remain in the market and for this they kept on promoting
themself in any situation. After leads were generated, an aggressive email marketing
campaign was launched to reach out those leads.
• The names like Myntra and Flipkart were entering the market at the same time. So to
survive in the market, Snapdeal started to add more products listing into their
website. Soon Snapdeal ventured into a proper e-commerce site including categories
like electronics, fashion, kitchen appliances, apparels and many more.
4. Ads
• Flipkart launched its “Big Billion Day” offer in October 2014, and
Snapdeal left no room for others to take its advantage. It
introduced its own advertisement along with Flipkart showcasing
users the advantage to shop with them.
• Again when Flipkart launched its new advertisement in June 2015,
then also Snapdeal nailed it and created its own ad along with.
• Other than that, Snapdeal launched various television
advertisements for promotion and bring organic traffic to their
portal.
5. Partnership
• Snapdeal has received 7 rounds of funding till date:
• Round 1: In January 2011, Snapdeal received a funding of $12
million from Nexus Venture Partners and Indo-US Venture Partners.
• Round 2: In July 2011, the company further raised $45 million
from Bessemer Venture Partners, along with existing investors Nexus
Venture Partners and Indo- US Venture Partners.
• Round 3: Snapdeal then raised a 3rd round of funding worth $50
million from eBay and received participation from existing investors
including Bessemer Venture Partners, Nexus Venture and IndoUS
Venture Partners.
• Round 4: 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.
6. • • Round 5: Snapdeal received its 5th round of funding of
$105 million in May 2014. The 5th round included
investments by Blackrock, Temasek Holdings, Premji Invest
and others. The round valued Snapdeal at $1,000,000,000.
• • Round 6: Snapdeal received its 6th round of funding in Oct
2014 from Softbank with investments worth $627 million in
fresh capital. This made SoftBank the largest investor in
Snapdeal.
• • Round 7: Snapdeal raised $500 million in its 7th round of
funding in August this year from Alibaba, Softbank and
Foxconn.
7. Reviews
• This site is awesome I am a regular buyer of online .i buy a
roti maker from snapdeal this site gives a great discount on
roti maker and atta maker and both products are great in
use no defect in manufacturing and at delivery.its delivery
time is as perfect when they say deliver that time
• Am a regular customer and I must say the speed and
coverage of delivery have increased significantly. But still
we are not able to get bigger items in states like kerala and I
think steps should be taken to rectify those
• It is very nice app or site I order intex headphone in feb
2015 it shipped via ecom express it take only 5 days for
delivery but I am not satisfy for this item and I return it and
then courer calls me and return it and after 3 days I got my
money back really got site
