It is not easy to begin a business. You require to work on your ideas, find investors and capital and then you require to work hard to obtain results. Ask those who are successful, they will tell you it is the best feeling ever when an idea takes off to places.
Founders of Snapdeal
Snapdeal set its own place in the e-commerce field in India. In 2010, when Rohit Bansal and Kunal Bahl wanted to begin their own business, they decided an offline couponing business and called it MoneySaver.
It was after they met investor Vani Kola that the deal really took off. The first meeting was not good, but after 2nd meeting, Vani Kola’s venture capital firm made it mind to invest in Snapdeal. Initially begun as an offline business, Snapdeal became an online business in 2010. It was a rough ride in the first few months. Lessons were learnt but mistakes were made.
Since, the biggest decision was made by founders in November 2011. Motivated by the success of Alibaba, Kunal and Rohit wanted to make something on similar lines. The deals business was closed and an online marketplace was started instead.
It was a make or break decision. Snapdeal had an extremely large market share in the deals business at that time and opening something new was very risky and the move shocked the investors too. At that time, eBay was the only marketplace in India.
Success of Snapdeal
Snapdeal Founders with Alibaba Founder Jack Ma
It was a decision that was not for the short time. When RohitBahl handled to gain the nod the board, the current form of Snapdeal took shape. Currently, over 50,000 sellers sell around 5 million products on Snapdeal. The company’s phenomenal development in a short period has been an unusual journey. The company started to focus on building scale and enhancing speed. When eBay made investment in Snapdeal, they brought great experience to the table.
Snapdeal has raised an additional $627 million from SoftBank
Snapdeal is one of the fastest developing e-commerce companies in India with the huge online marketplace. In just two years, the company went from shutting down their group coupon business and beginning an online marketplace to evolve a billion dollar company. Its year on year growth is almost 600%.The workforce average age at Snapdeal is 25. Their values – Change, Innovation, Honesty, Openness and Ownership led them to greater success.
The company’s development had been exceptional, but it is their seamless effort to bring the best to the market and their enthusiasm to succeed as the best B2C (Business to customer) marketplace is what sets them apart. Great ideas might be significant for a business, but it is more important to the confident implementation of those ideas and the right effort. It is action and not only thought that provides results.
In January 2011, Snapdeal got a funding of $12 million from Indo-US Venture Partners and Nexus Venture Partners.
In July 2011, the company raised a further $45 million from Bessemer Venture Partners, along with available investors Indo-US Venture Partners and Nexus Venture Partner.
Snapdeal then received a 3rd round of funding of $50 million from eBay and get participation from available investors such as Bessemer Venture Partners, Nexus Venture and Indo-US Venture Partners.
Snapdeal raised its 4th round of funding worth $133 million on Feb-2014. The 4th round of funding was led by eBay with all the existing institutional investors i.e, Kalaari Capital, Nexus Venture Partners, Bessemer Venture Partners, Intel Capital and Saama Capital all participating.
Snapdeal raised its 5th round of funding worth $105 million in May-2014. The 5th round contained investments by Temasek Holdings, Blackrock, PremjiInvest and others. The round valued Snapdeal at $1,000,000,000.
Snapdeal raised its 6th round of funding in Oct-2014 from Softbank with $647 million investments in fresh capital. This builds SoftBank the biggest investor in Snapdeal.
Snapdeal received its 7th round of funding in Aug-2015 from Foxconn, Alibaba Group and SoftBank with $500 million investment in fresh capital.