Mumbai: Where did Ratan Tata invest – in Amazon or Flipkart? Neither. The chairman emeritus of Tata Sons has invested in online marketplace Snapdeal.com.
“Tata has made a personal investment in the company,” Snapdeal co-founder and CEO Kunal Bahl said. However, the investment amount, was not disclosed.
“This stands testimony to the growth and success that we have seen in a short span of 4 years,” Bahl said.
Snapdeal, which has raised about $400 million since its inception, has invested about $100 million in logistics and operations to expand its presence in the $3 billion Indian e-Commerce market.
“An investment by a legendary and respected figure like Tata is an excellent validation of our focused strategy on building a long term enterprise and marks the start of a very important phase for the company,” Bahl said.
Snapdeal has seen 600 per cent growth year-on-year for the last two years, he added. Snapdeal currently houses over 5 million products across 500 diverse categories from over 50,000 sellers.
The city-based firm had raised $100 million (about Rs. 600 crore) in May from Temasek, BlackRock Inc, Myriad, Premji Invest and Tybourne, while in February, it had received funding worth $133.7 million (about Rs. 830 crore) from its existing investor, eBay and others.
A report by consulting firm Technopak pegs the $2.3 billion e-tailing market to reach $32 billion by 2020.
Snapdeal rival Flipkart on July 29 announced a $1 billion funding, which is the largest in the fledgling ecommerce sector. A day later, world’s largest e-tailer Amazon said it will pump in $2 billion to bolster business here.
Another report by consultancy firm PwC and industry body Assocham suggests that e-commerce firms are expected to spend up to $1.9 billion by 2017-2020 on infrastructure, logistics and warehousing.
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