Online retailer, Snapdeal, recently raised $40 mn from global investors Bessemer Venture Partners (a private equity firm) along with existing investors Nexus Venture Partners and IndoUS Venture Partners has plans to use the funding raised for expansion in 100 cities across India. The company will introduce innovative measures on various fronts to enhance the overall consumer experience which will not only be in terms of new categories that the consumers need, but also various platforms that run the company’s back end, and logistics’ processes.
Commenting on the deal, Kunal Bahl, CEO-Snapdeal, said, "We would like to strengthen our hyper-local deals business by using the funding raised. At the end of the day, it’s about more and more relevant deals. With respect to our products business, we’re in the top three fashion-lifestyle products sites in India, in terms of volumes sold. We will further look to introduce newer categories within the travel section as well. We already have 50-city presence and we are looking forward to expand that number to 100 cities. So, we are looking at pumping in money to expand our geographical reach as well. Our new initiative—Deals Near Me—is already giving customers customized deals according to their respective locations and preferences. This product will also take into account customers’ preferences across products and services, showing more relevant deals on the home page."
"We met Rob Chandra (Partner, Bessemer Venture Partners) and decided to seal the deal. Bessemer Venture Partners bring in knowledge, experience and empathy and that really makes it easier for us. It took us 30 days to close the deal. In comparison to our earlier deals, this was quick. For example, when we had raised our first round of funding, it had taken five and a half months to close the process," he added.
Snapdeal has 8 million members, operates across 50 cities in India, and has partnerships with over 10,000 brands and retailers from various categories. It offers online deals for retail lifestyle, branded products, electronics, fashion accessories & travel with an addition of 3 new subscribers every second.