Gurgaon-based Jasper Infotech, which owns and operates online marketplace Snapdeal has received an undisclosed amount of investment from Anand Piramal, executive director of Piramal Group. The investment, Economic Times reported, is in Piramal’s personal capacity and estimated to be below USD 1 million.
This is also the first external round in the Kunal Bahl and Rohit Bansal-promoted e-commerce brand since it raised USD 21 million from Luxembourg-based Clouse SA in August 2016.
Snapdeal was last valued at USD 2.5 billion in March 2017 when it raised Rs 113.2 crore from Nexus Venture Partners along with co-founders Kunal Bahl and Rohit Bansal. SoftBank Group remains the largest investor in the company with a 33% stake.
In an official staement Piramal said, “Snapdeal’s sharp execution in bringing great selection to the mass market segment in tier 2-3 cities has been quite successful. The company's mission of enabling the success of hundreds of thousands of small businesses in India through its marketplace is commendable."
Last week, Snapdeal said its consolidated revenue shot up 73% to Rs 925.3 crore on a yearly basis, while losses narrowed more than 71% to Rs 187.4 crore. It is longer in a duel with online retail giants Amazon and Walmart-owned Flipkart, but is focused on what it calls “value conscious” customers.
"Since 2017, Snapdeal’s revenues have grown rapidly with profitable unit economics. With hundreds of millions of first time eCommerce buyers yet to transact, Snapdealis well poised to grow in the future," Piramal said.
After the failed merger plan with Flipkart, Snapdeal went through a series of changes to revive itself. The ‘Snapdeal 2.0’ mode ensured the company slashed its expenses and try to follow unit economics. It let go of many from its workforce and sold its payments unit Freecharge and logistics company Vulcan. The intention was to sharpen focus on unbranded products for tier II and III towns.
Snapdeal has said that 80% of its subscribers come from small towns and cities. It has more than 500,000 registered sellers with over 200 million listings on the platform.