As Snapdeal prepares for its initial public offering (IPO), Kunal Bahl, the founder of the e-commerce company, shared his insights into what he felt was a key question among urban Indians: "But, who buys from Snapdeal?"
Snapdeal is a distant number three after Amazon and Flipkart, in the highly competitive e-commerce space in India. Bahl said Snapdeal happens to be a brand that is not in the urban sub-consciousness.
He said over 70 per cent of Snapdeal customers are from tier 2 towns, looking to buy affordable products and those looking for “value”.
“Majority of our customers have a household income of up to Rs. 40,000/month. They mostly live in Tier 2 cities and beyond. Most of them commute using public transport or a two-wheeler. Their aspirations are no longer limited by how much they earn,” the chief executive officer (CEO) said.
“And we cover 96% of the pin codes in the country. Our users browse and connect with us in seven languages, beyond Hindi and English.”
Earlier this month, Moneycontrol.com had reported that Softbank-backed Snapdeal is all set to venture into the offline domain with the launch of partner stores across small cities of the country with an aim to attract and cater to ‘Bharat’, catering to small towns.
The first Snapdeal partner store will be launched in January next year. The company plans to gradually expand the number to around 25 by the end of 2022. Ahead of the Snapdeal IPO, Unicommerce, its fully owned subsidiary, has raised investment from Softbank for around 30 per cent stake, sources privy to the development had said.
“Our consumers aren't looking for brands. They are looking for the combination of the right product plus right price,” Bahl said in his post.
Kunal Bahl, 37, co-founded Snapdeal along with his school friend Rohit Bansal in February 2010.“Bharat buys from Snapdeal and we are thrilled to be playing a part in realising Bharat’s growing aspirations.”