If you thought Flipkart's end of year targets were challenging, get a load of Snapdeal!
Flipkart may be planning to double its gross merchandise value to $8 billion by December, but Snapdeal is looking to beat India's largest e-tailer as it is targeting $10 billion in GMVs (total sales value of the merchandise sold through the marketplace in a period) by the end of the year.
That's a four time increase from its current GMV of $2 billion. Little wonder that the company is gung ho about its latest acquisition of Indian luxury and lifestyle products site Exclusively.com, which will not only strengthen its fashion business but also help it reach $2 billion in gross merchandise volume (GMV) in the category in 2015.
In fact Kunal Bahl, co-founder and chief executive officer of Snapdeal expects Exclusively.com to become a $1 billion business for the company in the next three years. The aim is to establish India's first online luxury mall.
" There’s a certain percentage of our existing 40 million users who aspire to buy at least one luxury fashion product. We are making luxury available at their doorsteps," Bahl told the Business Standard.
"Electronics, one of the largest contributors to Snapdeal's sales, is estimated to become a $5-billion business, followed by fashion at $2 billion. The remaining will come from other categories put together," a company executive was quoted as saying by the Business Standard.
Currently, Exclusively.com retails products from designers like Manish Malhotra, Tarun Tahiliani, Manish Arora, Anita Dongre, Rohit Bal, Shivan & Narresh, Gaurav Gupta, JJ Valaya, Ritu Kumar, Varun Bahl, and Neeta Lulla, to name a few. This year, the company plans to launch leading international luxury brands and designers on its site.
So far Exclusively.com had raised over $18 million in funding from Accel Partners and Helion Partners. In November 2012, Myntra acquired Shersingh, a private label developed by Exclusively.com.
As part of the acquisition, Exclusively will complement Snapdeal’s existing ecosystem and will provide a consolidated offering for the luxury and lifestyle shopper. It will continue to function as an independent site and all aspects of Exclusively’s online shopping experience will remain intact -- with new collection and service augmentations in the pipeline. Snapdeal on the other hand will help the company scale up and expand its current business and reach.
"With Exclusively’s fashion experience and Snapdeal’s scale of operations, we look forward to not just servicing large metros, but also the aspirational demand in smaller towns across India,” said Mohini Boparai-Guleria, co-founder, Exclusively.com.
The acquisition of Exclusively is similar to that of Snapdeal's rival Flipkart acquiring online fashion retailer Myntra for an estimated Rs 2,000 crore deal in May 2014, marking it the biggest consolidation in the domestic e-commerce space and the deal comes at a time when others in the e-tail sector are expanding their presence acquisition of firms in niche categories. And while rival Flipkart raised $2 billion last year and is on course to raise another #500 million, Snapdeal raised about $1 billion in the same period, most of which came from Japan's SoftBank ($627 million).
Updated Date: Feb 18, 2015 16:15 PM