2. About Us
Akshay Gautam
Education: B.Tech Computer Science & Engineering, IIT Delhi
Work Experience: IBM ISL 10 Months
Summer Internship: Nomura Securities, Summer Analyst - Investment Banking Division
Interning with Nomura, Akshay received excellent reviews for his work on pitch-books & projects across M&A, ECM
& DCM products in various sectors. As a member of BETA, he was the coordinator for Exchequer – IIMA’s national
level finance competition which saw participation from India’s Top 25 B-Schools and managed its Private Capital
Event. A super scholar badge recipient at school, Akshay has cleared CFA L2 & full FRM and filed a patent with IBM.
Vinay Kumar
Education: B.Tech Mechanical Engineering, IIT Delhi
Work Experience: BPCL 24 months
Summer Internship: Reliance Industries. Corp. Fin
Vinay led to major efficiency improvements at BPCL besides launching several initiatives for social benefit. At RIL, he
worked on Forex Debt profiling as part of a live project, receiving highest ratings on direct applicability of the work.
As project coordinator of the student run consulting body of IIMA, he pitched and closed projects across domains,
including PwC and DLF. A scholar badge at school, he is interested in cue sports and Robotics.
Siddhartha Bhargava
Education: B.Tech Chemical Engineering, IIT Roorkee
Work Experience: Royal Dutch Shell 34 months
Summer Internship: JP Morgan, Summer Analyst - Investment Banking Division
Siddhartha is the secretary (Head) of FII -the student consulting body of IIMA boasting of 35+ live projects by
eminent clients like Infibeam and Amazon. He holds the NCC 'C' certificate and was a Convenor of the IIT Roorkee
Tech-Fest. Consulting in Europe and Singapore for oil major Royal Dutch Shell has enriched his personality as he has
worked face to face with clients of different nationalities He assessed over 100 upcoming Indian companies for
potential IB/PE/VC opportunities as part of his stint with JP Morgan investment banking division in Mumbai.
2
3. Overview of Group Buying in India
Overview Market Share (July 2011) (2)
The number of online buyers has jumped 70%- from 10 million Others
to 17 million - while active Internet users have grown by 28% Dealivore 8%
to 100 million in 2010 4% SnapDeal
Ecommerce business in India is showing resurgence and Livingsocial 27%
consumers are not shy of deal sizes that cross `20,000-25,000 7%
In June 2011, 4.6 million Internet users in India age 15+ Goat
accessed the Coupons category from a home or work 8%
computer, reaching 10.4% of the entire online population
SnapDeal.com, which has tripled its audience in the past year, Sosasta
led the category with 1.5 million visitors during the month, 11% Dealsandyou
followed by Dealsandyou.com with 990,000 visitors and 18%
Mydala
MyDala.com with 952,000 visitors 17%
Too many players How it Works?
Low Barriers A customer subscribes with SnapDeal to get daily deal
to Entry alerts for coupons
Success
Immediately
The customer click on "Buy” and chooses from several
generating
payment options – credit/debit cards
revenue
Consolidation
likely The customer receives daily deals and vouchers via SMS
Players are and email
strong in
regions not The customer shows the voucher & redeems it at the
pan-India merchant
3 Source: Website and Street Research.
1. ComScore, June 2011, 2. Buzzom, July 2011.
4. Overview of SnapDeal.com
Overview Key Management
SnapDeal.com (“SnapDeal” or the “Company”) was started Kunal Bahl
in Feb 2010 and has growth into one of India’s fastest growing Responsible for managing strategic vision, key
e-commerce websites – ranked among the top 22 websites of business relationships, fundraising and growth
India in terms of traffic (1) Holds an MBA from The Wharton School
The Company offers average savings of 50% - 90% at popular Rohit Bahl
restaurants, spas, salons, movie theatres, among other leading Responsible for innovations in technology-backed
categories such as sports, weekend getaways. The coupons marketing services and overall corporate strategy
bought by customers remain valid for the next 3-6 months Previously, worked with CapitalOne
The Company is now present in 50+ cities in India and enjoys
Ankit Khanna
70% transactional market share in the group buying space Product head and responsible for Business
The Company has a network of 5000+ small & large retailers Development, Marketing and Technology
across the country, which plays a key role in scaling the service Holds a Bachelors Degree from IIT Delhi
Financials and Projections Recent Investments
Target for the year FY2012 raised Year Transaction & Type Size
from `1Bn to `1.5 Bn
Revenues 2007 Jasper Infotech – Kenneth Glass US$0.10Mn
2009 Jasper Infotech - NEA Indo US US$1.10Mn
Products business contributes 15% 2010 Jasper Infotech - Indo US US$1.06Mn
Products 30% of users access deals on
sold mobiles 2010
Jasper Infotech - Kenneth Glass
US$0.08Mn
(Angel Investor)
5000+ merchants and vendors 2011 Jasper Infotech - Nexus, NEA - Indo US US$7.72Mn
Merchants Snapdeal - Bessemer Venture, Nexus
2011 US$35.08Mn
Venture, NEA - Indo Us
4 Source: Website and Street Research.
1. EconomicTimes
5. Competitor Analysis
Deals of
the day
Location
Specific
Physical
Goods
Deal
Categoriz
ation*
Visitors
(1)
1473 952 990 194 586
Revenue
per day 5872 - 507 - 151
(USD) (2)
5 1. ComScore June 2011
* Classification of Deals along product categories, for ease of use
6. Reasons behind the success of SnapDeal
The service is inherently viral in nature and that if consumers see value in a service
or product, they will buy the coupon
Geographic Supplier Strong Online Mobile
Physical Goods
Presence Network Presence Commerce
The Company offers The Company sells With a network of The Company has Mobile commerce is
specific coupons to coupons for over 5000+ online presence via a significant asset
customers in specific experience goods merchants, deal Facebook Company, as 30% of
cities and coupons for sourcing is better The SnapDeal its members access
This increases the buying branded Sellers have been Facebook deals on their mobile
subscriber base lifestyle products, making requests to community zoomed devices
tremendously and fashion accessories, the Company and to 20,000+ in less The site allows
allows SnapDeal to electronics, apparel this has sufficiently than 60 days of customers to
target its customers Plan to foray into reduced the sales opening and now receive daily text
effectively selling cars cycles boasts of 140,000+ alerts (or emails);
likes hence many
The Company Since its launch 90% of the service customers access
provides the products providers who Customers can deals on the go
customers with business has been have been talk about new
deals across 50+ doubling each featured on deals they This will be a big
cities in India and month and now Snapdeal.com benefited from competitive
is also planning a accounts for 15% want to use the and also request advantage for the
foray of the Company’s service again to deals from the Company going
internationally total business attract customer Company forward
Market Leader in the Group Buying Category
6 Source: TechCrunch
7. Does SnapDeal stand apart from others?
Points of Parity Points of Difference
Group buying: The Company essentially offers “deals of the Mobile Coupons: The SnapDeal.com website is capable of
day” to the customers who register their email ids on the sending Deal SMSes to its customers thereby
SnapDeal.com website No Tipping Point: Unlike other group buying sites such as
Experience Goods: The mentality of Indian consumers Groupon, the Company does not have a floor on the number
traditionally has been that they prefer not to buy physical of coupons bought before the deal goes live. Another
goods such as eletronicc online but would buy experience advantage is that because there is no threshold for the deals,
goods. The Company like many of its clones offers the deal will NOT be canceled by the merchant
predominantly experience goods Foray into Physical Goods: Unlike other clones, the
Site Experience: Similar site experience – deals of the day, Company has announced that it has teamed up with Tata
by location etc Motors to sell the latter’s car models at a heavily discounted
Discounts: Such group buying sites offer similar discounts price on their site, starting with Indica Vista
across product categories, thereby appearing as clones to Pan-India Presence: SnapDeal has expanded across India in
customers a very big way since it opened in July 2010. Now it boasts of
presence in more than 50 cities across the country
Differentiated from other clones in the market
7
8. Ways to become a dominant player
Branding, Building Trust, Technology Integration
Acquire similar clone websites at the
Rapid Customer Acquisition Merchant Acquisition M&A, Partnerships
startup stage to eliminate any competition
Improve Transaction Rate Case studies which position as a local Core assets gained from an acquisition are
Better user experience such as offering advertising medium: For eg: Selling a local management team and small
deals by category/location/radius/locality themed lake cruise in Bhopal subscriber and merchant bases, to which
Reward point system Special focus on movies and restaurants Snapdeal can then apply its expertise,
Reviews/blogs and product comparisons resources and brand to scale the business
existing Ability for merchants to self generate
deals on the site with proper quality and Local partners to expand in South
3-D videos and high quality pictures of the Asia/South-East Asian Regions
background checks
products
Initial focus on distressed inventories of Partnership agreements with companies
User chats, ask for help features etc
big retail chains such as eBay, Microsoft, Yahoo and Zynga
Increase subscribers pursuant to which these partners display,
High Degree of personalization On the ground sales force to complement promote and distribute SnapDeals deals to
Refund and product quality validation online marketing efforts by bringing in the their users in exchange for a share of the
Accessibility of the site through Face human touch and comfort level revenue generated from SnapDeals’ deals
book/Twitter/RSS feeds/Mobile Apps Target of a million vendors by 2011 end
Auto search facilities
Marketing Blitzkrieg
Increase value per subscriber
Launch comprehensive deals in high
margin services segment
Cross selling
Focus on emerging areas like lifestyle
8
9. Acquisition and Retention
Customer Acquisition Merchant Acquisition
On the
Focus on Heaving ground sales Case studies
lifestyle and spending on force: Close of benefits
mobile/compu Marketing in to 3000-5000 to
ters segment initial days employees merchants
needed
Vendor
Focus on Special focus
margins
service on
Direct TV depends
segments to restaurants/cl
marketing upon quality/
increase ubs/movie
reviews and
margins theatres
traffic
Free
Facility for
Coupons on
Focus initially merchants
Sponsored purchase of
on distressed to self
Search, portal tablets,
inventories of generated
advertising handsets
Big Retailers deals on the
redeemable
website
on site
9
10. Building a Brand through Technology Integration,
Mobile apps, Social Media
Social Media
Referral program through Facebook/twitter etc
Celebrity Marketing through Twitter: Paying SRK to Say that SnapDeal is great
Cancellation policy/Refund policy, Return Guarantees
RSS Feed, Customized suggestions to customers based upon online history
Launch Mobile Apps
• Shopping on the go anywhere, anytime: GPS sensors to automatically suggest 1 km
radius, same locality deals upon turning on the auto searcher
• Convenience for subscribers to redeem deals on a mobile
• Voice based apps emulating the Siri on Ipad2
Building trust through technology convergence
• Live chat, ask a question, live chat , deal suggestions, deal packages
• 360 Degree Video/Pic of products, Redirecting to product comparison sites or blogs
• Cancellation policy/Refund policy, Return Guarantees
• Cheapest price anywhere guarantee
10