Group buying portal SnapDeal has raised 40 million USD in series B funding from Bessemer Venture Partners. The previous investors Nexus Venture Partners and Indo-US Venture Partners also participated in the funding. The deal values SnapDeal at over Rs. 1000 crore.
SnapDeal had raised 12 million USD in series A funding from Nexus Venture Partners and Indo-US Venture just six months ago. Hence, the total investment in SnapDeal has now reached 52 million USD. The second round of funding has come very fast on SnapDeal’s way, because in short span of time it has expanded its business tremendously. The number of registered users on SnapDeal have jumped from 1 million to 8 million with employee strength increasing from 300 to 500 in just six months.
Most of the group buying portals offer daily deals in service categories like restaurants, spas, etc. But, SnapDeal has differentiated into products (electronics, fashion and accessories) and travel deals, too. SnapDeal is also planning to expand in foreign markets like Singapore, Malaysia, Indonesia, Philippines and Vietnam in this financial year, according to an interview in afaqs!.
Interestingly, a village was named after SnapDeal recently. The village had severe drinking water problem. Hence, SnapDeal decided to extend their helping hand towards the villagers. They installed water pumps to provide clean drinking water. Out of gratitude, villagers changed the name of their village from Shivnagar to Snapdealnagar.
E-commerce has emerged as a hot category for investments in India. Though the Indian e-commerce industry is at the level where US industry was in 1998, it is scaling up rapidly. The current internet userbase in India is approximately 60 million. Hence, there is a lot of scope growth. This is the reason why more and more venture funds are showing confidence in Indian e-commerce firms.