Snapdeal grows on RupeePower. This is latest acquisition by Snapdeal in recent months and the company on spree of acquiring many startups.
RupeePower is India’s most extensive marketplace for loans, credit card and other personal finance product offers. For a customer, he/she can instantly compare personalised loan or card offers from over 15 lenders that include Banks, NBFC’s and HFC’s. They can apply online and get instant approval.
RupeePower was aiming to be one stop shop for all individual financial needs. An individual has to empower to make informed, efficient and optimal financial decisions. At the same time the company ensures that financial institutions derive value from their online platforms and target consumers in a relevant manner.
In India, financial services in the country are fragmented and antiquated. The acquisition mirrors the strategy that Snapdeal adopts like few years back eBay has adopted. eBay acquired PayPal to supplement services around its own marketplace business.
Snapdeal owned by Jasper Infotech P Ltd will be able to offer its customers a financial services marketplace. The company will be able to offer a range of services like personal loans, credit cards, auto loans, home loans and extended warranties etc., also finance companies will be in position to leverage Snapdeal’s nationwide coverage across India.
Snapdeal is acquisition spree, last month they acquired minority stake in GoJavas brand (QuickDel Logistics P Ltd) that handles logistics supply. GoJavas was part of Jabong. Snapdeal acquired Indian designer wear and accessories e tailer Exclusively.com for undisclosed amount. From 2010, Snapdeal has acquired 8 companies with diverse businesses.
In 2010 Snapdeal acquired Bengaluru based group buying site Grabbon.com, in 2012 the company acquired esportsbuy.com, an online sports goods retailer based in Delhi. In 2013 they acquired online marketplace for Indian handicraft products Shopo.in. In 2014 they acquired companies like Doozton.com and Wishpicker.com. In 2015 they have already picked up stakes or acquired 3 companies Smartprix.com, Exclusively. in and GoJavas.com. RupeePower will be fourth acquisitions for the year.
Snapdeal was founded in 2010 by Kunal Bahl and Rohit Bansal who are Chief Executive Officer and Chief Operations Officer of the company. The company has become market leader in the Indian online market placed after Flipkart and Amazon.
Snapdeal has been funded several times by various venture companies. The company raised their Series ‘A’ funding in 2011 for $12 million from Nexus Venture Partners and IndoUS Venture Partners (Now known as Kalaari Capital). Within a span of 9 months they raised another $40 million as part of Series ‘B’ from their existing investors and Bessemer Venture Partners. In 2013, Snapdeal raised series ‘D’ funding for $75 million from new set of investors like Intel Capital, Ru-net, Saama Capital and eBay.
For Snapdeal 2014 is the historic year, they got many rounds of funding. In Feb 2014, the company raised their Series ‘F’ funding of $133.7 million from existing investors. In May, 2014 they placed private equity for $100 million with new investors like Tybourne, Premjiinvest, Myriad, BlackRock and Temasek Holdings.
In Aug 2014, Ratan N Tata (ex Chairman of Tata Group and Tata Sons) invested undisclosed amount in the company and in October 2014, they placed private equity of $627 million with SoftBank Internet and Media(SIMI).
After acquisition of RupeePower Kunal Bahl of Snapdeal said “Realizing the various difficulties that consumers face while deciding and purchasing financial products/services and the challenges that companies face whilst reaching out to the ‘right’ audience, we have brought RupeePower into our family, to help solve the distribution challenges of the financial services ecosystem and make it more inclusive,” in a statement. He also said “The same way Snapdeal has democratised retail in India, now we aspire to democratise access to credit.”
Several other acquisitions are in the offing from Snapdeal. Significant among them would be Freecharge.com. Talks on way for the acquisition and announcement will be done shortly in next few days. Another company Unicommerce will be merged with Jasper as per documents filed with Registrar of Companies. After announcement will be made on this merger. Unicommerce provides its software to companies like Myntra, Snapdeal, Jabong, Groupon and HealthKart.
Snapdeal have roped in services bollywood actor Aamir Khan to endorse the products and services. Advertisements have been aired in various national and regional channels.