Delhi's Snap Deal in expansion mode

Delhi-based e-commerce portal, Snap Deal, is on the look-out for small-sized acquisitions and hopes to seal two deals in the range of USD 1 million each in the next 3-6-months, a top company official said.

"We have earmarked USD 2 million (around Rs 10 crore) for acquisitions. We are in negotiations with a few entities and we hope to seal a couple of buys in the next 3-6-months," Snap Deal Founder and CEO Kunal Bahl told PTI here.

In July-August, 2010, the company had acquired a 100 per cent stake in Bangalore-based Grabbon.

"We are looking at small companies which are riding on innovations and great ideas. We are not just interested in acquisitions in our space which will only add a little to our market share -- we already have scale," Bahl said.

The company presently enjoys a 70 per cent market share in terms of revenue and transactions, he said.

The year-old company is into selling deals on products, travels, services, entertainment and miscellaneous hobbies on its portals and is today present in 50 cities.

"By end-2011, we plan to extend our footprint to 50 more cities," Bahl said.

The company plans to invest heavily in brand-building. "We plan to spend around Rs 10 crore for brand-building, mainly through TV and radio," he said.

Snap Deal, which prides itself on being "particular about out inventory", also sells gadgets such as i-pods, Blackberry phones and branded fashion retail products at good discounts. It presently works with over 1 lakh merchants.

Ranked 22nd in terms of traffic on its website, Snap Deal gets a marketing fee on each deal and has already turned gross profit-positive, Bahl said.

"We will close FY'11 with a top-line of Rs 100 crore. The way we are growing and the way this segment is set to grow, I won't be surprised if we touch a revenue of Rs 500 crore by 2014," he said.

The company recently raised USD 12 million from two private equity players -- Nexus Venture Partners and IndoUS Venture Partners.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • The Constitution defines complimentary roles for executive and judiciary

    For avid constitutionalists, it is important to remember that while the executive and the judiciary constitute two major pillars of any democratic ord

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Urs Schöttli

Hong Kong’s democratic dilemma

The 19th and 20th centuries were very unkind to China. ...

Parvez Imam

Does a piece of paper define your identity?

Papers are not papers, after all! Just like you are ...

Bubbles Sabharwal

The importance of looking at the bright side

Now here’s the thing. When your body defies gravity, it ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture