Today, people in India have turned to the internet for buying everything right from books to air tickets and houses. Due to busy schedules, they do not have the time to jump from one shop to another for selecting and purchasing the products of their choice. The fashion of online shopping is developing an enormous craze among people of India. The country’s new generation has started using the internet on their phones by avoiding the computer world almost completely and hence, mobile online shopping too has become very popular among the youngsters. Flipkart, Amazon, Jabong and many other ecommerce players are giving their rivals great competition and ultimately, the ecommerce sector is developing day by day.
Snapdeal is one of such leading online marketplaces in India. In 2010, Rohit Bansal and Kunal Bahl founded this company and since then, it has been successfully growing by leaps and bounds. The company is now the biggest online shopping marketplace that sells all the products varying from cameras to apparels to kitchen appliances. In the past, Snapdeal acquired FreeCharge and RupeePower. FreeCharge allows people to recharge their prepaid DTH plans and mobile phone plans online whereas RupeePower is a leading comparison platform of India for loans and cards.
Snapdeal is doing so well that even the ecommerce giants from abroad are tempted to invest in the company. Yes, it is right! Surprisingly, multiple sources say that the biggest Chinese ecommerce company, Alibaba along with another successful Taiwanese company, Foxconn has decided to invest in the second largest ecommerce firm of India – Snapdeal. Foxconn is renowned for manufacturing Apple iPhones. Both Alibaba and Foxconn are going to invest around $500 million in the company.
In a last few years, eBay, BlackRock, Bessemer Ventures and SoftBank, in addition to some Indian venture firms such as Nexus Venture Partners and Kalaari Capital had invested in this Indian ecommerce giant. As a result, this ecommerce leader had raised more than $1 billion. This time again, SoftBank which is the largest shareholder of Snapdeal has infused an additional $100 million into this ecommerce company.
Furthermore, to make its foothold in logistics business, Snapdeal has opened up the platform to another vendor named SafeShip. For it, this ecommerce giant has planned to spend $150 million to $200 million for expanding their delivery operations in the next year.
During his visit to India, Jack Ma who is the founder of Alibaba said that they plan to invest more time and money in the country for their online business. They want to invest in the world’s second most populous country which is developing rapidly in the ecommerce sector as well. According to a report, more than 2/3rd of the Indian population is under the age of 35 and the median age of the country is 27 years. Now this median age is 10 years younger than that of the United States. So Jack Ma made his choice to invest in an Indian ecommerce company and what can be better than Snapdeal?
This investment decision of Alibaba and Foxconn would not benefit just their business but will also benefit India. Due to their efforts, the company would take stakes in the Indian companies and will also generate a remarkable number of job opportunities in the country.