News Column

Tata picks up stake in city- based Snapdeal

August 28, 2014

CITY- BASED Snapdeal has received a shot in the arm with Tata Sons chairman emeritus Ratan Tata making an investment in the e- tailer. "Mr. Tata has made a personal investment in the company," Snapdeal co- founder and chief executive officer Kunal Bahl said on Wednesday.

"This stands testimony to the growth and success that we have seen in a short span of four years," he added. The amount of the investment was not disclosed.

The announcement comes a day after Snapdeal entered into a partnership with Tata Value Homes to sell online flats built in Bangalore, Chennai, Pune, Mumbai and Ahmedabad.

Snapdeal, which has raised about $ 400 million since its inception, has invested about $ 100 million in logistics and operations to expand its presence in the $ 3- billion Indian ecommerce market.

"An investment by a legendary and respected figure like Mr. Tata is an excellent validation of our focussed strategy on building a long- term enterprise and marks the start of a very important phase for the company," Bahl said.

Snapdeal has seen 600- per cent growth year- on- year for the last two years and currently houses over 5 million products across 500 diverse categories from over 50,000 sellers, he further said.

The company, estimated to have crossed $ 1 billion in sales this year, is rapidly adding new categories of products.

Apart from apartments, it launched a catering supplies segment recently.

Snapdeal had raised $ 100 million (about ` 600 crore) in May from Temasek, BlackRock Inc, Myriad, Premji Invest and Tybourne. In February, it received funding worth $ 133.7 million (about ` 830 crore) from its existing investor eBay. A report by consulting firm Technopak pegs the $ 2.3 billion e- tailing market to reach $ 32 billion by 2020 with investment flowing into the sector.

Snapdeal's rival Flipkart on July 29 announced a $ 1- billion funding, which is the largest in the country's ecommerce sector. A day later, the world's largest etailer Amazon said that it will pump $ 2 billion into India to bolster its business.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: Mail Today (India)

Story Tools Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters