Stealth • 9d
𝗦𝗻𝗮𝗽𝗱𝗲𝗮𝗹: 𝗭𝗲𝗿𝗼 𝗼𝗿 𝗛𝗲𝗿𝗼? 📉 📈 Many of you might not have used Snapdeal but surely heard about it. Founded in 2007 as a discount coupon venture, Snapdeal became one of the top three e-commerce companies in India. At its peak in 2016, it was valued at $6.5 billion with $1 billion in funding. Known as the "pivot king" due to frequent strategic changes, Snapdeal nearly closed but managed to survive. Here's what went wrong: • Blind Acquisitions: Acquired 14 companies, including FreeCharge at $400 million, later sold at a 90% loss. • Unsustainable Economics • Lack of Focus: Frequent pivots diluted efforts. • Marketing Missteps: The "Aamir Khan Controversy" Turnaround: Snapdeal 2.0 (2017) Termed as final pivot involved a blue ocean strategy, focusing on a value-driven marketplace for budget-conscious consumers in tier 2 cities and beyond. This led to: Improved Margins, Reduced Losses and is about to achieve profitability. 📈
Stealth • 8d
I think their big mistake is they have brought freecharge for 400 millon. Already Kunal Shah was looking for buyers to sell that almost sunked ship. Snapdeal was their life saver and promoted Mr Shah to start Cred🧐
•
Wipro • 8d
Snapdeal was the Yahoo of Indian e-commerce 😂
Great article brother
In this whole process there is only one happy person that is Kunal shah
Very informative...
Seems like they've given up competing with the big boys for now. A pivot down to being an affordable marketplace is sensible.
Have to give credit to the current team for trying to revive the brand with this value-conscious positioning though. Might work in smaller cities. Even if they turn profitable, hard to see how Snapdeal recovers from that huge brand erosion and public perception of being a deal site.
The Aamir Khan controversy put them on the backfoot at the worst possible time when Flipkart/Amazon were gaining steam.
I actually used Snapdeal a fair bit back in 2014-15. Their frequent garden/electronics sales pulled me in before they lost the plot completely.
The FreeCharge acquisition for $400 million has to be one of the worst deals in Indian startup history. Sold for like $60 million just a few years later.
Informative 👍
Unikon.ai Bags $2 Mn To Scale Up Its AI Social Media Platform ....
The Unified Content Business Model ....
Zepto in talks to raise $400-mn at $5-bn valuation ....
Prosus writes off investment in Byju's marking $493 million loss ....
Cofounder Courtship: How to Find the Right Mate—for Your Startup ....
Anil Ambani’s Strategic Future Plans: Can His Companies Make a Comeback? ....
IIT Guwahati alumni’s startup acquired by US EV charging giant ....
Exclusive: Doceree raises $13.6 Mn from Creaegis ....
Zepto gets $665-mn war chest to challenge Blinkit, Swiggy ....
Customer Marketing Decoded: A SaaS Founder's Playbook for Revenue Expansio ....
Download the medial app to read full posts, comements and news.
