After moving towards Tier-2 and Tier-3 cities,Snapdealis now moving its focus towards the rural markets. “In the last two to three years, we focused mainly on Tier-2 and Tier-3 cities and we now see at least 70% of our sales from these areas. Going ahead, we now plan to focus reaching into the rural market as that is where the next growth story is,” said founder Kunal Bahl.
The company’s total income in FY14 stood at R168.16 crore compared to R33.71 crore a year earlier.
Snapdeal on Tuesday signed a memorandum of understanding with Small Industries Development Bank (Sidbi) to provide financial support to its MSME vendors.
The e-commerce company is to get at least 1 million entrepreneurs on its platforms in the next three years, and so far, already has 20% of these entrepreneurs on its platform. These entrepreneurs, who will secure loans from Sidbi, will get loans at an interest rate of 10-12%.
Snapdeal is now focusing on strengthening its logistics and warehousing and will dedicate most of the funds, which the company has raised in the last year, towards the same.
Currently, the company has tied up with Gojavas for last-mile delivery, and in March the e-commerce major acquired a 20% stake in the company for R120 crore.
The company has two initiatives to support sellers on their platform, one is Snapdeal Plus and the other is Capital Assist, the latter helps provides capital for businesses on the platform.
Snapdeal received $627 million in its last round of funding from Japan’s SoftBank, and so far, the company has not used the entire funding. The company will now look to raise further capital when the time is right and from the right investors. “We will raise further capital when the time is right and from the right investor,” said Kunal Bahl.