Indian online marketplace Snapdeal recently raised a whopping $200 Million funds, which was led by Canada’s Ontario Teachers’ Pension Plan. This wasn’t a conventional round of funding. Why you ask?
The marketplace’s executive explained this, “It is not a fundraising round per se. Fund raising happens when the company goes to investors to ask for more money. We have enough cash in bank right now and might not go for a fresh funding round anytime soon. This is the result of inbound interest by investors.”
With this fresh funding, Snapdeal is now the second-highest valued start-up after Flipkart as its valuation touched $6.5 billion.
In the times when investors are reluctant to loosen the purse strings, Snapdeal has managed to get funds without even asking for it. It is startling especially when the marketplace recorded a loss of Rs. 1,328.01 crore.
Last year, CEO Kunal Bahl had confidently stated that the ecommerce marketplace did not need to raise funds anymore and that it still continues to receive investors’ interest.
Anup Vikal, CFO at Jasper Infotech shared, “We see these investments as a continuing endorsement of Snapdeal’s strategy to build India’s most reliable and frictionless commerce ecosystem.”
The logistics industry is currently rolling in money with all top ecommerce companies diverting their attention towards it. Be it Amazon, Paytm or Flipkart, they all are focused on this division.
Just like its competitors, cash-rich Snapdeal will also utilize the fresh funds to strengthen its logistics arm along with its fintech unit. The ecommerce biggie which has a major stake in logistics company Gojavas, will continue to work on improving its delivery network. Its warehouse expansion plan is in full swing too.
Will make Freecharge stronger
Another division which is in the line to receive a major chunk of the fund is Snapdeal’s financial technology (fintech) vertical, namely Freecharge.
“The growth of fintech is already happening in a phased manner. But, yes, the company would be investing more in Freecharge,” said the marketplace’s executive.
In the beginning of 2016, IOS had reported how 2016 will witness several Snapdeal-Freecharge developments. Now the company has $200 million to realize its plans.
The company also has many ambitious investment tactics in store.
“We continue to make targeted investments in building internal and external capabilities that will enable us to consistently deliver optimal experience for the millions of buyers and sellers who transact daily on Snapdeal,” revealed Vikal.
Editor team is specialized in introducing the marketplace content targeting the Indian online sellers. They plan and coordinate to bring the appealing content for the small businesses on how to partner with the e-commerce sites like Amazon and Flipkart and strategies for improving their online business.
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