January 11, 2011
Snapdeal secures $12 million for coupon deals
India-based deals site has a big lead on Groupon, gets funded by Nexus Venture Partners
Indian-based coupon site Snapdeal.com announced this week that it has received a $12 million investment led by Nexus Venture Partners and IndoUS Venture Partners.
Snapdeal posts discounts and coupons for local businesses all across India. Much like Groupon, the site shows the value of the purchase, the percent discount and how much will be saved. Customers pay part of their portion online and the remaining amount directly to the merchant.
Also like Groupon, Snapdeal lets customers read a summary about the business and other customers’ reviews.
Snapdeal posts discounts and coupons for local businesses all across India. Much like Groupon, the site shows the value of the purchase, the percent discount and how much will be saved. Customers pay part of their portion online and the remaining amount directly to the merchant.
Also like Groupon, Snapdeal lets customers read a summary about the business and other customers’ reviews.
“India is a country full of small and medium businesses offering consumer services and goods,” said Suvir Sujan, Managing Director of Nexus Venture Partners in a prepared statement. “Snapdeal is already emerging as the leading online couponing site in India for these local businesses in over 30 cities across India.”
With over one million subscribers, Snapdeal has snagged 70 percent of the online couponing market in India.
A little over two weeks ago, Groupon signalled its move into Indian e-commerce territory with the strategic acquisition of a small clone called SoSasta. That service launched about three months ago and serves 11 cities in India.
Groupon will have a lot of work to do, however, if it ever wants to catch up with Snapdeal in the region.
Founded in 2008, Snapdeal has now expanded to 50 cities in India and features 50,000 retailers on the site. The company is operated by about 300 employees.
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