Snippets IT Solutions to raise up to $5 mn

Snippets IT Solutions, a Hyderabad-based technology startup that runs online coupons and deals site Shoppirate.in, is in talks with a couple of venture capitalists to raise anywhere between $3 million and $5 million, according to its founder and chief executive officer Kulpreet Kaur.

“We expect to close the deal within the next six months. We propose to utilise the funds to scale up our team from the present 15 to 50 in Hyderabad, enhance our proprietary technology platforms and initiate aggressive promotional campaigns,” she told Business Standard.

Launched in July 2013, Shoppirate.in has recently received a seed fund capital of Rs 50 lakh from Confidance Holding, a new private investment firm focusing on funding innovative ventures in the technology space with operations based in Hyderabad. It has pledged another $1 million for marketing and expanding into other countries this year.

Shoppirate.in has already partnered over 600 major online stores including Jabong, Myntra, FirstCry, Nytaa, Purpple, Flipkart, RedBus, Amazon, Expedia, Dominos and Yatra, with plans to take the number to 1,000 in the next three months. It currently generates Rs 50 lakh GMV (gross merchandise value) to Healthkart per month.

“Our Canadian site Shoppirate.ca was launched recently, while the US portal Shoppirate.com will go live in two weeks from now,” Kaur said, adding the company was targeting close to one billion subscribers from the US market in the first year of launch.

Stating that the Indian affiliate market still needs to get matured, Kaur, however, said that the potential was immense and that the ecosystem was coming out with more transparency.

“We currently have a user base of 200,000 in India, which we expect to treble in the next one quarter,” she said, adding the company was generating revenues of Rs 20 lakh a month, and was expecting to start making profits from June this year.