Indian Groupon Named Snapdeal
Type Private limited company
Inception February 2010)
Headquarter NewDelhi
246, IstFloor,Phase-III,
246, IstFloor,Phase-III,
Okhla Industrial Area,
New Delhi 110020.
New Delhi 110020.
Key people
(Ceo)Kunal Bahl Rohit Bansal
Revenue 100+ crore INR
Owner Jasper Pvt Ltd.
Employees 500+
Website Snapdeal.com
Site member 8 million
Alexa rank Global Rank-742 
Rank in India- 28
Rank in India- 28 About
Snapdeal.com is the #1 e-commerce, best daily deals site in India, in terms of traction, which provides up to 90% discounts on dining, health and beauty services, branded products, travel and more with daily deals in close to100 cities. Another reason for the site’s rapid growth in 2011 comes from its recently launched products deals business, which Snapdeal sells branded lifestyle products, like fashion accessories, electronics, apparel, etc. at significant discounts. Since its launch 3 months ago, the products business has been doubling each month and now accounts for 15 percent of Snapdeal’s total business, Bahl said.Snapdeal Business Model
Snapdeal.com pushes customer to snapdeal merchants partner to buy their product and service by giving discount to customers. The cost of advertising spent by merchant is used to give discount to customer. Snapdeal .com charges about 35% pay online in advance for any deal. The rest has to be paid directly to the merchant on delivery of service or good.In this way merchants get benefit
· Block inventories are sold out quickly.
· They get huge no. of new customer.
· Their sale is done in bulk in very short time, it means less margin but more customers.
For Example: Snapdeal made history by selling 30,000 deals in one day. It was an Airtel recharge voucher worth Rs.100 that they sold for Rs.50.Snapdeal also managed to sell 1000 Reebok sunglasses in one day, offering a whopping 70% discount. Recently, they offloaded 300 Gucci wallets in one hour, again giving it off at 70% of the original price. So, snapdeal is marketing tool for the merchants.
Funding
In January 2011, Snapdeal received a funding of $12 million from Nexus Venture Partners and IndoUS Venture Partners. Subsequently, in July 2011, the company raised a further $40 million from Bessemer Venture Partners.
Acquisition of Grabbon
In June 2010, Snapdeal acquired Bangalore based Daily deal site, Grabbon.com for its good image and trust in market. Now top guys there took senior roles and today, they are a very important part of Snapdeal.
Snapdeal.com Nagar
In June 2011, Snapdeal made facility of drinking water by installing manual pumps in a village, Shiv nagar, UP in India and in returns the villager decided to coin their village to Snapdeal.com Nagar.
Snapdeal Start up
Wharton graduate Kunal Bahl at 25, Bahl had quit his cushy Microsoft job based in Seattle and thinking to start something his own.So, he convinced his IIT Delhi alumni Rohit Bansal. We went to sell discount coupon in small restaurant.We used to wait for hours in the heat outside small restaurants, where we wouldn't have eaten even if we had to pay," says Bahl.When a restaurant owner told the duo earlier last year that he had got five customers from their website Jasper Infotech, it became an inflection point for Bahl. He launched Snapdeal.com .Since January this year, Snapdeal has been growing its revenues at over 100%, selling unused inventories of everything from sunglasses, wallets and even travel packages, totalling over 10,000 discounted deals everyday. Kunal Bahl along with Bansal had to shell out $3000 for buying the Snapdeal.in domain name — an investment that's paying fantastic. They sold about 2,200 Reebok Sunglasses, in a day, at an 80% discount deal.400 holiday packages to Kerala were sold in February. Our business model is to clear unsold distress inventory. Bansal had to shell out $3000 for buying the Snapdeal.in domain name — an investment that's paying off well. The model is quite similar to how Groupon makes revenues. Snapdeal .com charges about 35% upfront for any deal. The rest has to be paid directly to the merchant on delivery of service or good. The employees job is to get discount deals from merchants.
They also handle customer calls and delivery of products. With 400 staff on the payroll, Bansal and Bahl want to get a share of India's $500 billion retail market, of which nearly 18% is services business offered by sites like Snapdeal.The website plans to close at over Rs 100 crore in revenues by December, Right now, Dealoftheday.com, Letsbuy.com and Groupon owned soSosasta.com, are all competitors. But Snapdeal claims to have 70% share. "Our first priority was to make our brand felt across India," says Bahl. Mumbai local trains are now painted with Snapdeal ads. In Bangalore, government buses which ferry IT workers are covered head to toe with Snapdeal banners.
With Snapdeal operations now extending across 50 of India’s largest cities and 10,000 brands and retailer partnering with the daily deal site, prospects are good. What’s more, according to Snapdeal Founder and CEO Kunal Bahl, the startup is currently averaging 1.5 million new members per month.
Top 10 group buying websites or daily deals sites
1. SnapDeal
- Location: New Delhi
- Founded: 2010
2. Mydala
- Location: New Delhi
- Founded: 2009
3. Dealsandyou
- Location: Gurgaon
- Founded: 2010
4. SoSasta
- Location: Kolkatta
- Founded: 2010
5. Koovs
- Location: Bangalore
- Founded: 2009
6. Khojguru
- Location: New Delhi
- Founded: 2010
7. BindaasBargain
- Location: New Delhi
- Founded: 2009
8. Taggle
- Location: Bangalore
- Founded: 2010
9. Dealivore
- Location: Hyderabad
- Founded: 2010
10. OffersforShoppers
- Location: Bangalore
- Founded: 2006
