SnapDeal Business Model

SnapDeal Business ModelUnicorn Economy Analysis

SnapDeal Business Model
SnapDeal Business Model

Before we begin analyzing the various revenue streams that SnapDeal has.  Let’s fist have an overview of the various facts and figures of the E-Comm Behemoth.

Let’ Start with Funding and Founders.

About SnapDeal Funding, Founders and Facts

SnapDeal Founders: Kunal Bahl and Rohit Bansal (another Bansal in the E-Comm).

SnapDeal Funding: SnapDeal business model has led to this behemoth getting funds from every corner.  Snapdeal has so far received a funding of $1.62 Billion from Nexus Venture Partners, Indo-US Venture Partners, Bessemer Venture Partners, Kalaari Capital, Intel Capital and Saama Capital Blackrock, Temasek Holdings, PremjiInvest Foxconn and E-Comm Behemoths and VCs of the likes of AliBaba, EBay and SoftBank have funded SnapDeal.  One of the world’s largest pension funds, Ontario Teachers’ Pension Plan, and Singapore-based investment entity Brother Fortune Apparel have also invested in the company.

SnapDeal Business Model

SnapDeal is owned by Jasper Infotech Private Limited.  It operates via a Market-Place business model of E-Commerce, adopted by various big players like Amazon, Flipkart etc.

Wait – This was not always the case.

SnapDeal started out as a Daily deals and Coupons Website.  Possibly the biggest example of a Business Model Pivot that we could think of in the Indian Start-Up Eco System. 😀

Wait, There’s More…..

They also considered the Inventory Model in the past which terribly failed and now they publicly shrug that model as if they never thought about it.

Today they operate with the Marketplace model only.

SnapDeal Business Model Sequence

  1. List Sellers – Today SnapDeal claims of having 100,000+ Sellers on its platform.
  2. Get Sellers to become Active – By Listing of the Products
  3. Sellers Agree to the TnC of SnapDeal and agree on a selling commission on every order [Ranges from 5-30% of the Sale Value depending on the item listed to be sold.]
  4. Whenever any order is put up on SnapDeal by a customer, SnapDeal passes that to the seller and arranges for the pickup and delivery [if fulfilled by SnapDeal] or else the Seller directly ships it to the customer.
  5. At the end of a certain pre – agreed period of settlement of payments to Sellers, SnapDeal aggregates the total sale achieved by a particular seller, and after deducting the sale commission and service tax, they wire transfer the rest of the money to the seller.

The sale happens via channels as listed below & For the entire amount of sale achieved by SnapDeal for particular seller SnapDeal will charge a percentage (%) cut on the total sale amount excluding VAT / CST.

  1. Website Sale
  2. Web-App on Mobile / Tablets
  3. Mobile App (Android or iOS or others)
  4. Direct via Tele Sales (Customer calling and Placing order – Happens rarely now)
  5. Via Affiliate networks (Bloggers, Coupon Websites, Review Websites etc)
  6. Social Buy
  7. Corporate Sales (Rewards and Recognition Programs) and Gifting Platforms [ Flipkart does not do this]

SnapDeal GMV Calculation

GMV is the Gross Merchandise Value i.e. the value of the goods and services sold on its platform put together.  According to estimates, it is still in the $3 – $4 Billion Range.

SnapDeal Business Model
SnapDeal Business Model

To Get a Clear Picture Read these as well:  Business Model of Flipkart and Amazon Business Model

Ad Space : SnapDeal Business Model

SnapDeal is one of the top 10 most visited websites in India.  Thus it gets a lot of active eyeballs in sale / non-sale times.


People are crazy in paying for ad spaces.


SnapDeal gets a lot of requests for the product launch, advertisements, and stuff.  Thus at some point, SnapDeal was about to put in money in Komli Media to get their hands on experience in selling ad spaces, but that deal went down the gutter on valuation jitters.

Following people have paid money to SnapDeal for sharing the Ad-Space:

  1. Samsung
  2. ClearTax
  3. Tata Housing
  5. Windows
  6. Mahindra Commercial vehicles
  7. ClearTrip
  8. BankBazaar
  9. Uber

Some of these have fixed ad space fee and others have sale split for commission and ad space fee mixed model.

SnapDeal Business Model via Listing Fee

SnapDeal charges sellers to be listed on the platform for selling goods owning to its high visibility website.  Plus the investment in a logistics company (described in detail below) also adds to the revenue for fulfilling seller requirements of shipping.

How Does SnapDeal Make Money
How Does SnapDeal Make Money

Companies Owned by SnapDeal

  1. June 2011, Snapdeal bought over Group buying site,
  2. April 2012, Snapdeal bought over, an online sports goods retailer.
  3. May 2013, Snapdeal bought, a marketplace for Indian handicraft products.
  4. April 2014, Snapdeal bought fashion products discovery site,
  5. December 2014, Snapdeal acquired gifting recommendation site,
  6. January 2015, Snapdeal bought a majority stake in product comparison website
  7. February 2015, Snapdeal acqui-hired luxury fashion products discovery site,  [Update: They shut down Exclusively in August 2016 and merged their entire catalog on].
  8. March 2015, Snapdeal acquired the majority stake in e-comm logistics service company
  9. March 2015, Snapdeal acquired ecommerce inventory and backend management software –
  10. March 2015, Snapdeal ventured into the fintech space by acquiring a majority stake of RupeePower which is a financial services and comparison site.
  11. April 2015, Snapdeal acqui-hired and bought over a full control in mobile-payments company
  12. September 2015, Snapdeal acquired Reduce Data, an intelligent display advertising platform.
  13. Well, they were about to acquire Rocket Internet-backed, troubled Myntra competitor,, but were skeptical of their wrong doings with the FDI regulations so were taking time when Flipkart came and added Jabong to their own Cart.

Business Model of SnapDeal Subsidiaries

Business Model of SnapDeal
Business Model of SnapDeal

So SnapDeal does not only make money from the sale of products and services sale but has some other acquired companies also making a small portion of revenue for them.

SnapDeal Business Model is a mix of the following revenue lines:

  1. Grabbon : Group Buying site, now redirects to SnapDeal
  2. Esportsbuy : Sports Accessories Retailing E-Commerce Website, acquired, shut it and added all the categories to its catalogue.
  3. Shopo : WANNABE ETSY is what I feel, any one can sell anything without any registration hassles and any thing else.  Shopo Says no sale fee no listing fee. God knows what use is this to SnapDeal apart from one more channel for selling goods.
  4. DoozTon : No Business, but the tech for displaying the fashion merchandise used to display products on
  5. Smartprix : Affiliate Website Model and Traffic Transfer via Reviews, Comparison etc.
  6. Exclusively : First they bought over!  Then purchased the dot com version for them and the model here is getting more and more branded apparel (ethnic and designer wear) to be sold via Exclusively at breakneck margins (35-40%). [Update: They shut down Exclusively in August 2016 and merged their entire catalog on].
  7. GoJavas : Last Mile and E-Comm Delivery company, major shareholder is SnapDeal, which wanted to fully acquire them but GoJavas rejected that deal.  Go Javas has 450 clients including FlipKart, Zivame, Myntra etc.  Major Business comes from SnapDeal.
  8. Unicommerce : They are a backend and inventory management SaaS (software as a Service) for budding and upcoming E-Commerce Firms (Retail) which do not want to build their own Backend for the same.  They charge per user per month to E-Commerce companies.
  9. Reduce Data: Data Analytics use for E-Commerce Companies currently serving only to SnapDeal in India.
  10. FreeCharge : Ads, Mobile Wallet, Commission for Distribution, Capital Assist, Micro Lending and Escrow Services etc.  I will describe FreeCharge in detail later.
  11. RupeePower : Credit Card, Loans etc comparison website which gets SnapDeal money on selling data of those requiring these services by Banks.

Conclusion to SnapDeal Business Model

So to Summarize the Business Model of SnapDeal, snapdeal makes revenue from the following lines of business:

  1. Marketplace Sale of Goods and Services (Own Portal of SnapDeal, Exclusively, EsportsBuy etc).
  2. Convenience Fee of Seller Listing.
  3. Featured Sellers on the Landing Page.
  4. Advertising.
  5. Payment Gateway Business of FreeCharge.
  6. UniCommerce SaaS.

Disclaimer to SnapDeal Business Model

All views, interpretation, and analysis of SnapDeal Business Model are of Unicorn Economy.  Please use the info mentioned herein at your own discretion, Unicorn Economy will not be liable for any damage arising out of use of this information at your discretion.


  1. What is the experience of sellers on ebay? Are sellers satisfied with the seller support and the services provided to them?

  2. Do you even know, their background, the UNIQUE: e-Marketplace for Retailers, Valued at Rs 44,000 CRORE, that Snapdeal Founder DUO Kunal bahl & Rohit Bansal CLAIMED, to Get from CHINA in December 2011, Was in REALITY, An ORIGINAL & UNIQUE, 1st & Only one of its Kind in India, COPYRIGHTED INDIAN BUSINESS, Operated & Validated on ground, from 2005 to 2010, by its Indian Creator: Entrepreneur Gaurav Dua & It was directly but ‘Covertly’ STOLEN & ROBBED by them while Duping DUA & After Raising $ 50 Million from ‘Çolluding’ early Investors on the STRENGTH of this STOLEN Marketplace Business, DISCREETLY Carried Out, until 2014, by Snapdeal founders, while Abandoning their own ‘Failed’ Business of Deals ?
    Simply Google: “ Snapdeal Cheated Gaurav Dua “
    Even today, they are not into their Business to Make loss or profits, they are Serial Crooks, siphoning off Investors Money, Fooling them with Fake turn around stories, as per convenience, repeatedly & shall soon land in Prison, where they belong.

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