Snapdeal sets aside $20 mn for acquisitions

E-commerce firm Jasper Infotech Pvt Ltd that runs online portal Snapdeal.com has earmarked $20 million (around Rs 100 crore) to make up to four acquisitions this year.

The company that had bought Bangalore-based group buying firm Grabbon.com in 2010, has recently acquired online sportswear retailer eSportsbuy.com for an undisclosed amount, as it looks to strengthen offers for daily deals and lifestyle products.

"In 2012 we will make three to four announcements (on acquisition). We are not only looking for e-commerce players that specialise in specific product categories, but also relevant technology firms that can add value to our business," Snapdeal.com co-founder and CEO Kunal Bahl told PTI. Asked what kind of capital the firm has set aside to fund its inorganic growth activities, he said "$20 million".

Last year the company had raised over $50 million from private equity firms —Bessemer Venture Partners, Nexus Venture Partners and Indo-US Venture Partners. On whether the firm was considering another round of funding, he said: "We are well funded to support our expansion for now."

According to Bahl, Snapdeal has 15 million registered users with "a couple of million" active repeat customers.

Commenting on future plans, he said: "We will continue to expand fashion and lifestyle offerings like perfumes, sunglasses and jewellery." Currently, the firm executes 7.5 lakh orders a month and delivers products to 4,000 towns and cities across India, he added.

The portal features 500 brands in 200 categories with over 6,000 products. Earlier this year Snapdeal had launched its first ever mass media advertising campaign -- You live only once -- featuring "yamdoot (or God of Death)". "We had spent around Rs 10 crore on the campaign and have benefited tremendously. While the campaign was on, the traffic to our website grew 300 per cent bringing down the cost of customer acquisition," he added.