SNAPDEAL V2.O? “Ticket to Redemption or a shot in the Dark?”

Prepared by: Dhroov SharmaManav Singh

ABOUT SNAPDEAL

SnapDeal is an Indian e-commerce company incorporated in

February 2010 as a daily deal platform inspired by groupon.com but

expended in September 2011 to become an online market place. The

company is based in New Delhi. The CEO of the company is Kunal

Bahl and Rohit Bansal

Investors

47 50

133105

627

500

200

113

0

100

200

300

400

500

600

700

2011, Nexusventure & Indo-

US venture

2011, Ebay 2014, Ebay 2014, Blackrock 2014, Softbank 2015, AlibabaGroup

2015, JasperInfotech

2017, Nexusventure

Round of Funding ($ mn)

Funding ($ mn)

JOURNEY OF SNAPDEAL

2010

2012

2013

2011

Feb 10

Gets Launched as online

deals merchant.

Jun 10

Acquires Grabbon, Banglore

based deals Company

Jan 11

Attracts 1st investor i.e Nexus

Venture ($10 million)

Dec 11

Decides to shut down deals

& start offering products

Jan 12

Initiates Marketplace as 1st 10

sellers come to sell wares

Dec 12

Closes the year with 1000

sellers selling their products

Apr 13

Gets investment from global

e-commerce giant eBay.

Jul 13

Hits a milestone of 20k+

sellers selling their products

JOURNEY OF SNAPDEAL

2015

Snapdeal v2.0

2014

Feb 14

Receives second round of

funding from eBay - $133 millAug 14

Got funding from

Industrialist Mr. Ratan Tata

Oct 14

Gets $627 mil funding from

Japanese corp, Softbank

Apr 15

Acquires Freecharge, India’s

leading website for recharges

Sep 16

Snapdeal unveils a new brand

identity with Unbox Zindagi

COMPETITORS ANALYSIS

0

5

10

15

20

25

30

35

40

45

50

2014 2015 2016 2017

Competitor's Market Share (%)

Snapdeal

Amazon

Flipkart

Others

• Above graph shows that till 2015 snapdeal was doing very

good but after 2015 it’s share decreased rapidly.

GROWTH OF THE COMPANY

• In Initial stage snapdeal received less amount of funding from

Investors because of new startup in E-commerce sector

• Later, Snapdeal received good amount of funding from

investors and more number of Investors showed their keen

interest in their business

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

0.00 Sep-09 Jan-11 Jul-11 Apr-13 Feb-14 May-14 Oct-14 Apr-15

2 8 40 50 134 100

637

2506 22

208 216

682

100

1779

5000

Round of Funding ($mm)

Implied Valuation ($mm)

PAST APPROACHES OF THE COMPANY

Started their journey with the slogan

“Bachatey raho!” with the motive of

providing everything in cheaper prices.

Bachatey raho! was not successful as

company was expecting, so they rebrand

their slogan with “dil ki deal” and choose

Aamir khan as their brand ambassador

After the succession of “dil ki deal” they

reached to maturity stage so to be in

growth the again, they rebrand themself

with new ideas and new slogan “unbox

zindagi”

CURRENT MARKET SCENARIO

• As per below graph, the monthly users for snapdeal is decreasing

drastically. While other bands are increasing their market share with

new ideas, because of stagnation in snapdeal that’s why they decrease

• Due to this, customers preference is also changing from snapdeal to

filpkart

• As per 2016, 61% customers preferred flipkart while only 28%

choose snapdeal for purchasing

0

5

10

15

20

25

30

35

40

45

50

Ap

r-1

4

May

-14

Jun

-14

Jul-

14

Au

g-1

4

Sep

-14

Oct

-14

No

v-1

4

De

c-1

4

Jan

-15

Feb

-15

Mar

-15

Ap

r-1

5

May

-15

Jun

-15

Jul-

15

Au

g-1

5

Sep

-15

Oct

-15

No

v-1

5

De

c-1

5

Jan

-16

Feb

-16

Mar

-16

Ap

r-1

6

May

-16

Monthly Active Users (%)

Amazon

Flipkart

Snapdeal

INTERNET USERS IN INDIA

• Indian market is in the favor of Ecommerce and India is becoming

digital

• Internet users are increasing day by day in India, can be seen in

below graph. Though this we can see the future growth in the

market

189.6

278

354

427

503

0

100

200

300

400

500

600

2013 2014 2015 2016 2017

Internet Users in India(mn)

Internet Users

E-COMMERCE GROWTH IN INDIA

• People are changing their preference from traditional purchase to

modern purchase and due to this E-commerce is growing rapidly

can be seen in below graph

0

5

10

15

20

25

30

35

20102011

20122013

20142015

2016

5.3 79.5 9.5

16.4

21.4

30.2

E-Commerce Growth in India ($bn)

Growth ($bn)

FUTURE FORECAST

• As per the rapid growth of E-commerce & M-commerce market

in current scenario, we can assume that the E-commerce & M-

commerce market will get more penetrate in Indian market in the

near future

10.3 16.02 23.42 31.39 38.9 47.45

77.7%

55.5%

46.2%

34.1%

23.9% 22%

0

10

20

30

40

50

60

70

80

90

2015 2016 2017 2018 2019 2020

Retail eCommerce Sales in India (Forecasted)

Sales ($bn) Growth (YoY)

6.0210.46

16.81

23.64

30.2

37.96

58.5%

65.3%

71.8%

75.3% 77.6% 80%

0

10

20

30

40

50

60

70

80

90

2015 2016 2017 2018 2019 2020

Retail mCommerce Sales in India (Forecasted)

Sales ($bn) % of Retail eCommerce Sales

• So, as above points we can conclude that snapdeal have great

opportunity to penetrate in the market again

RECOMMENDED STRATEGIES IN v2.0

• Improving the quality of customer services.

• Product range will be tip to toe.

• Product will be delivered within 48 hours.

• Improved and attractive packaging.

• Use of mass communication for promotion.

• Launching the TV channel for the customers who found difficulties

in surfing Internet.

• Telephonic order can be placed.

• Service will available in all the cities.

• More secure payment method.

• Tie up with the more merchant bank.

• More combo and attractive deals.

• Just in time inventory

• Snapdeal Supreme for videos and games.