Ecommerce marketplace Snapdeal has raised $21 million from Luxemburg based investor Clouse SA, reports Livemint. The money was raised allotted to the company on August 10th, and come as part of a previously announced funding tranche in February. In addition mutual-funds company BlackRock Inc valued Snapdeal’s preference shares at $24,582.2 per share as of June 30th, according to filings with US Securities and Exchange Commission, added the report.
A spokesperson confirmed the development with MediaNama; but the company however did not mention where the funding will be utilized in.
“The raising of fresh funds at a consistent pre-money valuation is reflection of the robust performance of Snapdeal and its continued focus on building a long term business based on strong fundamentals like best-in-class customer experience and consistent growth in net revenue. There is huge interest in the digital commerce market in India and investors are keen to back the businesses focused on real performance metrics,” added the company.
Recently, it announced that it is starting a next-day deliver programme called Snapdeal Gold and has added 5 million products which are eligible for this and that it would be adding 10 million more for the festival season. Snapdeal also said that it has set aside Rs 200 crore for advertising spends for the holiday season.
Previous funding: In February, Snapdeal raised $200 million in funding from Ontario Teachers’ Pension Plan (OTPP), with participation from Iron Pillar and others. The company had said then that it would use the funds to build up its capabilities and for bettering consumer and seller experience. It had also raised $500 million in August last year and $627 million in October 2014.
Expansion of Logistics: Snapdeal announced this month that it opened 6 logistics centres in Delhi-NCR, Lucknow, Hyderabad and Kolkata, while calming that 80% of its orders are shipped through its fulfilment centres, which is knows as SD+ though it did not mention how many sellers are currently registered with SD+. This announcement was made after its rival Amazon announced that it is building six fulfillment centres in this month. The company currently claims to have a delivery presence in more than 6000 cities, with more than 300,000 sellers registered on its ecommerce platform.
Services on the app: Recently, Snapdeal had started offering services such as cab, hotel, flight and booking and food ordering on its platform in addition to ecommerce shopping. It has tie ups with Uber, Zomato, Cleartrip and redBus for these services and they are currently accessible through Snapdeal’s Android app under the “Services” tab, and not for desktop users.
Top exits and moves:
– Earlier in the same month, Snapdeal had appointed Saurabh Bansal as the Vice President and Head of Category Management.
– In July, Former COO of goJavas, Vijay Ghadge, was appointed as the chief operating officer of Vulcan Express, which is Snapdeal’s logistics unit.
-In January, Idi Srinivas Murthy had quit the company, after working for less than a year after with Snapdeal as the senior vice president of marketing.