Snapdeal Share Who Privately Held

Friday 28 November 2014

Snapdeal Share Who Privately Held


Snapdeal.com, owned by Jasper Infotech Pvt. Ltd, was valued at about $1.76 billion (`10,562 crore) after SoftBank Group’s $602 million (`3,612 crore) investment in October, which means the Japanese investor acquired almost a 33% stake in one of India’s largest e-commerce marketplaces, according to the latest filings with Registrar of Companies (RoC).


SoftBank Group, the largest shareholder in Chinese e-commerce giant Alibaba Group Holding Ltd, late last month announced that it had led a $627 million investment in Snapdeal making it the largest shareholder in the e-retailer.

The share-holding pattern assumes 4.3% of Snapdeal stock that has been set aside towards employee stock options (ESOPs) and founder stock options.

Snapdeal’s top five investors include SoftBank, which owns a 32.6% stake via an entity called Starfish 1 Pte Ltd; Kalaari Capital (previously called IndoUS Venture Partners), which owns 13.7%; Nexus Ventures, which does about 12.2%, and eBay Inc. that owns 9.3%, according to documents filed with the RoC.

Founders Kunal Bahl and Rohit Bansal, who also participated in the current round by investing about `2.94 crore each, together hold a 8.5% stake in the company. Bahl currently holds 5.3%, while Bansal’s share is close to 3.3%, according to the documents.

Other investors who contributed to the latest round include Temasek Holdings Pvt. Ltd (`105.35 crore), Tybourne Equity Masters Fund (`37.7 crore), Myriad Opportunities Master Fund (`54.02 crore), Premji Invest (`37.7 crore via PI Opportunities) and BlackRock Inc. (`44.05 crore).

Tata Sons’s chairman emeritus Ratan Tata, who invested in Snapdeal in August, now holds 0.11% stake in the company, according to the documents.

Separately on 13 November, Subramanya Venkat Sumukh, nominee of Bessemer Venture Partners Trust, resigned from the board of Jasper Infotech.

Bessemer holds close to 4% stake in the company. In October, Snapdeal had revealed plans of using the recently raised capital to improve technology and supply chain management. It will also use this money to open technology development centres in Bangalore, Hyderabad and Pune and will double its technology team to 1,000 people by next March.

The Delhi-based Snapdeal posted loss of `264.6 crore on revenue of `168.1 crore in 2013-2014, according to the filed documents.

The company was founded by Bahl and Bansal as a daily deals platform, selling coupons to groups of customers (similar to the Groupon Inc. model) but converted the company to a marketplace in late 2011, first offering services and then adding a wide range of products including apparel, books and electronics through third-party merchants. A marketplace provides a selling and technology platform to other sellers. Indian law does not allow foreign direct investment (FDI) in e-commerce but allows it in marketplaces.

Snapdeal currently claims to offer more than five million products across 500-plus categories on its platform with over 25 million registered users and 50,000-plus merchants.

Here's who owns how much of Snapdeal: In October, Snapdeal had revealed plans of using its recently raised capital to improve technology and supply chain management.

© LiveMint In October, Snapdeal had revealed plans of using its recently raised capital to improve technology and supply chain management. The company aims to expand its merchant base to one million in the next three years, it said in a statement. Online retail is valued at $3.1 billion and is estimated to grow to $22 billion in five years, as per a November 2013 report by brokerage CLSA.


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