{"id":5523,"date":"2019-07-23T06:53:00","date_gmt":"2019-07-23T06:53:00","guid":{"rendered":"https:\/\/www.thirdeyesight.in\/?p=5523"},"modified":"2022-11-11T06:59:21","modified_gmt":"2022-11-11T06:59:21","slug":"snapdeals-shift-in-focus-on-tier-ii-cities-and-beyond-gets-backing-from-anand-piramal","status":"publish","type":"post","link":"https:\/\/myechoproject.com\/TES\/snapdeals-shift-in-focus-on-tier-ii-cities-and-beyond-gets-backing-from-anand-piramal\/","title":{"rendered":"Snapdeal\u2019s shift in focus on tier-II cities and beyond gets backing from Anand Piramal"},"content":{"rendered":"\n<p>The investment has been made by Piramal in his personal capacity even as Snapdeal has strategically shifted from discount-driven strategy to focusing on value-conscious buyers living in areas beyond metros and tier-I cities.<\/p>\n\n<p>Written By Sandeep Soni<\/p>\n\n<div class=\"row\"><div class=\"col-sm-6\">\n<img decoding=\"async\" data-src=\"https:\/\/www.thirdeyesight.in\/wp-content\/uploads\/2022\/11\/snapdeal.webp\" class=\"img-fluid lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\">\n<p>In the last two years, Snapdeal has added over 60,00 new seller partners, who have added over 50 million new listings.<\/p>\n<\/div>\n<div class=\"col-sm-6\">\n<p>E-commerce marketplace Snapdeal, which is now making a healthy comeback after 2017 slowdown and an acquisition fallout with Flipkart, has raised undisclosed investment from Piramal Group\u2019s executive director Anand Piramal. The investment has been made by Piramal in his personal capacity even as the company has strategically shifted from discount-driven strategy to focusing on value-conscious buyers living in areas beyond metros and tier-I cities. \u201cSnapdeal\u2019s sharp execution in bringing a great selection to the mass market segment in tier 2-3 cities has been quite successful,\u201d said Piramal in a statement adding that Snapdeal\u2019s revenues have grown rapidly since 2017 with profitable unit economics.<\/p>\n<\/div><\/div>\n<p>Snapdeal had called off its proposed merger around August 2017 with Flipkart for $850 million, a valuation that plummeted from $6.5-billion valuation in early 2016. Moreover, Amazon\u2019s growing business in India had also displaced Snapdeal as the real competitor to Flipkart. However, instead of merging with Flipkart, Snapdeal tweaked its growth to focus on \u201cvalue-conscious buyers \u2014 around 400 million that are still at an early stage of discovering and buying goods online,\u201d according to Kunal Bahl wrote in a Linkedin post last week. This population mirrors the \u201cselection found in the bazaars of India. This is a market worth nearly $163 billion and only about 1-2% of this is online,\u201d Bahl had said announcing Snapdeal\u2019s audited financial results for FY19.<\/p> \n\n\n<p>\u201cThe inflection point in Snapdeal\u2019s journey was when they stepped back from the cut-throat competition that was happening between them, Amazon, and Flipkart in 2017. Snapdeal took that decision when they had little cash in the bank. It was a hard time to take that decision because any other alternative strategy would have also needed capital. So they took that decision to focus on core business,\u201d Devangshu Dutta, CEO at retail consultancy Third Eyesight had told Financial Express Online.<\/p>\n\n<p>Snapdeal\u2019s consolidated revenues grew to Rs 925.3 Crores in FY19 vis-a-vis Rs 535.9 in FY18, marking a sharp increase of nearly 73% in a 12-month period. Moreover, its losses shrunk by nearly 71 per cent from Rs 611 crore to Rs 186 crore in FY19. Its traffic also grew 2.3X to 70 million unique monthly users even as the number of transacting users grew 2.2X in the last 12 months. Anand Piramal\u2019s support to Snapdeal\u2019s turnaround comes \u201cfrom his own experiences of building and operating large companies in competitive sectors like real estate and financial services,\u201d Bahl said.<\/p> \n\n<p>The company\u2019s over 80 per cent users come from India\u2019s small towns and added more than 60,000 sellers with over 50 million new listings. Overall Snapdeal has over 5 lakh sellers and more than 200 million listings on its marketplace.<\/p>\n\n<p>Source: <a href=\"https:\/\/www.financialexpress.com\/industry\/sme\/piramal-groups-anand-piramal-backs-e-commerce-firm-snapdeal-heres-why\/1653873\/\" target=\"_blank\" rel=\"noopener\">financialexpress<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The investment has been made by Piramal in his personal capacity even as Snapdeal has strategically shifted from discount-driven strategy to focusing on value-conscious buyers living in areas beyond metros and tier-I cities. Written By Sandeep Soni In the last two years, Snapdeal has added over 60,00 new seller partners, who have added over 50 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[3],"tags":[],"class_list":["post-5523","post","type-post","status-publish","format-standard","hentry","category-press-quotes"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Snapdeal\u2019s shift in focus on tier-II cities and beyond gets backing from Anand Piramal - Third Eyesight<\/title>\n<meta name=\"robots\" content=\"index,follow\" \/>\n<link rel=\"canonical\" href=\"https:\/\/myechoproject.com\/TES\/snapdeals-shift-in-focus-on-tier-ii-cities-and-beyond-gets-backing-from-anand-piramal\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Snapdeal\u2019s shift in focus on tier-II cities and beyond gets backing from Anand Piramal - Third Eyesight\" \/>\n<meta property=\"og:description\" content=\"The investment has been made by Piramal in his personal capacity even as Snapdeal has strategically shifted from discount-driven strategy to focusing on value-conscious buyers living in areas beyond metros and tier-I cities. 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