The Indian eCommerce sector has been one of the busiest and lucrative sectors over the last couple of years. With the vision of tapping the huge potential of the Indian eCommerce market, funding continues to pour in for the companies. Snapdeal is leading the eCommerce rat race in terms of funding.
The Big 3 of Indian eCommerce has been going head to head, be it flash sales, outdoor marketing, print jacket banters or digital marketing. Moving further ahead, Snapdeal has secured a $200 million investment from the Ontario Teachers’ Pension Plan. This new funding deal makes it sure that Indian startups are one of the most attractive segments for the investors. Many experts had predicted that after a bout of heavy funding in 2015, investors would become skeptical with regards to investing in India. With this deal, one of the major pension groups from Canada, OTPP has entered the Indian market as an investor. OTPP’s move follows a spate of deals in the country by other Canada-based groups, including the Canada Pension Plan Investment Board which has invested in property and infrastructure projects. The new deal has increased Snapdeal’s valuation by about $2 billion in six months. In a statement released by the company, they had claimed to be valued at $4.8 billion already in August last year. The deal has made Snapdeal as India’s second most valuable startup after Flipkart. Other eCommerce companies are also actively participating in the funding rounds. This week, Bangalore-based retail group SnapBizz raise $7.2m in a round led by Ratan Tata, chairman emeritus of India’s Tata group. Along with vying for the top place with Flipkart, Snapdeal is also pitted against Amazon and Paytm which is backed by Alibaba Group of China. The four companies are somewhat indulged in a four-way race for supremacy in the Indian digital ecosystem. Flipkart, meanwhile, has raised $3.2 billion in funding from investors like Naspers, Tiger Global and DST Global, while Amazon pledged $2 billion for its Indian operations back in 2014, a figure that could soon be topped up with an addition $5 billion. Interestingly, Alibaba is reportedly talking to Flipkart about an investment, which — if completed — would put it on multiple teams.
Snapdeal has been one of the most successful eCommerce companies in India. Since its inception in 2010, the company has been successful in roping in 2,75,000+ sellers & has a reach across 6,000 towns and cities in India. Anup Vikal, Chief Financial Officer, Snapdeal, said the OTPP deal would allow Snapdeal to increase its investment. “We see these investments as a continuing endorsement of Snapdeal’s strategy to build India’s most reliable and frictionless commerce ecosystem,” he said. “We continue to make targeted investments in building internal and external capabilities.”