The Delhi based company deals in sports apparel, footwear, accessories and fitness equipment. Founded by two IIT alumni Amit Monga and Prateek Agarwal in 2011, has posted revenues of about R10cr in one year of operations. The product catalogue of the portal boasts an array of products like accessories for Tennis, Cricket and Golf, Sports shoes for multiple sports, apart from Bodybuilding supplements.
Talking about the acquisition Kunal Behl, the CEO of Snapdeal said, “The acquisition will help us expand our operation and strengthen our presence in sports retailing on the web given that there any hardly any organised retailers in the sector so far.”
This is Snapdeal’s second acquisition, after it acquired group buying site Grabbon back in 2010. In June 2010, it bought Bangalore based group buying site Grabbon.com for an undisclosed amount. To fund the latest acquisition, Snapdeal used a part of the Rs 200crore it raised last year from venture funds Bessemer, Nexus and Indo-US Venture Partners in a transaction that valued the company at Rs 1,000 crore.
Snapdeal, founded in 2010 by Kunal Bahl and Rohit Bansal operates across 50 cities in India retailing 10,000 brands, averaging at 1.5 Mn new members per month.
Another e-commerce player which was involved in such acquisition is Flipkart.com. The portal bought Letsbuy.com in February for about $20 million, its fourth acquisition to bulk up its portfolio.
According to a white paper by First Data Corporation and ICICI Merchant Services, the domestic e-commerce market is expected to touch Rs 50,000 crore in 2011 from Rs 19,688 crore in 2009. With over 100mn Internet users India is a lucrative market for retailers and they are vying for the customer’s attention with the widest range of products.
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