Snapdeal’s How a Small-Sized Startup was transformed into India’s biggest online marketplace
The web is full of HTML0. plenty of startups in the business world however, none are as compelling like the story that is the story of Snapdeal.
In 2010 two young entrepreneurs began to revolutionize the method by which Indians buy online. Kunal Bahl, and Rohit Bansal had just graduated from college with big plans for their upcoming business, Snapdeal.
In the early days the Indian eCommerce market was still in its early stages, and the two founders wanted to be a part of the equation.
8 years on, this tiny business has grown into India’s biggest online marketplace! In this tale of startup success we’ll take a close review of the process by which Snapdeal has become such a huge success.
How Snapdeal became one of the Top E-commerce Players in India
In 2010 the two Youngesters Kunal Bahl and Rohit Bansal were inspired to establish their own business. In the early days the concept of online retail was just beginning to take off across India.
Two friends pooled their money and created a tiny online marketplace known as Snapdeal. In the following years, they fought hard to expand their company and transform it into the biggest selling platform on the web in India. Nowadays, Snapdeal is a household brand in India and has revolutionized the method by which Indians purchase online!
Who is the CEO and founder of Snapdeal? Snapdeal?
As Kunal Bahl, and Rohit Bansal launched Snapdeal in February of 2010, they had a major objective: to become the largest online marketplace in India.
In the beginning the market for Indian e-commerce was small compared to other countries such as China as well as those in United States. However, Kunal as well as Rohit were convinced that, with dedication and perseverance, they could reach their goals.
They did! In a short period of duration, Snapdeal was the largest Indian online market boasting more than 250 million customers as well as more than 6 billion dollars in sales annually.
What exactly is Snapdeal? How did the idea get its name?
It’s an online marketplace offering many different products from a variety of sellers. It was established in the year 2010 in the year 2010 by Kunal Bahl as well as Rohit Bansal, each aged 22 in the year. They met when they were attending Delhi University’s Shri Ram College of Commerce.
They launched their Indian E-commerce as a daily deals portal similar to Groupon. But, they quickly recognized that Indian market wasn’t prepared for such a service. They re-evaluated their strategy and decided to concentrate on selling products rather than services.
The company is the largest marketplace in India, having over 300,000 sellers as well as 60 million items. It has approximately 30 million visits each every day and has a client base of more than 50 million.
How did this tiny startup achieve such a high level of success? Let’s examine some of the main elements that led to the success of Snapdeal.
A significant portion of the company’s success is attributable to its highly aggressive marketing strategies. The company was among the first online retailers within India to invest significant funds in marketing.
The company ran a number of advertisements that featured Bollywood celebrities such as Shah Rukh Khan and Ranveer Singh. These ads raised awareness of Snapdeal and enticed more customers to take a look.
Alongside its marketing initiatives, the this marketplace is also concentrated on building confidence with customers. It provides a 30 day return policy as well as a simple refund procedure.
The company also offers an insurance program for buyers which protects buyers in the event they are damaged or received defective products. These policies have contributed to building trust between the company’s customers and motivate them to keep returning.
Who was the first to invest in Snapdeal?
The company has managed to increase its revenue by forming strategic alliances. In 2014, the company partnered with Alibaba the world’s biggest online retailer.
This collaboration helped this online marketplace draw many more Chinese vendors to their marketplace. In the year 2016, Snapdeal also joined forces with SoftBank which is one of the largest venture capital companies around the globe.
Some of the most prominent buyers who invest in Snapdeal comprise eBay, BlackRock, Temasek, Myriad Group, Foxconn, Inc. Mr. Ratan Tata, Clouse SA, Premji Invest, Nexus Venture Partners, Bessemer Venture Partners, Intel Capital, Kalaari Capital, Cambrian Ventures, and Iron Pillar.
The investment provided startup with the needed boost and allowed the company grow even more.
Are there any examples of greatest successes that Snapdeal has seen through the many years?
Since its inception, Snapdeal has achieved many milestones. In 2012 it was the first Indian online retailer to receive the funding of a global investor after it received the sum of $50 million through eBay.
It was named by Forbes magazine as among the best three startup companies in India according to Forbes magazine. In the similar year also named the fastest-growing ecommerce business across India in the report of Deloitte.
Snapdeal continues to expand at a rapid growth rate. In 2016 Snapdeal was the second-largest company selling e-commerce in India following Flipkart. As of 2017, it was the biggest market on the internet in India with an estimated market share of 30 percent.
The company is also expanding its reach beyond India. The company in the year 2015 introduced Snapdeal China, which is an additional platform specifically designed that caters to Chinese sellers. In 2016, it purchased FreeCharge which is a well-known digital wallet service that is popular in India.
These are just a few of the many achievements that Snapdeal has enjoyed throughout the years. It’s obvious that this modest company has made significant strides and has no indication to slow down.
The main elements that have led to the success of Snapdeal are aggressive advertising campaigns and a focus on building trust among customers and strategic partnership agreements.
If you liked this story about a startup, make sure to read some of our Boingam . Also, be sure to check the rest of our Indian entrepreneurs’ success stories!
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