New Delhi, March 31 : Stating that it has enough capital, eCommerce firm Snapdeal today said it would not raise money just because it is “fashionable”.
The city-based firm, which received USD 627 million funding from Japan’s SoftBank last year, added that it still continues to receive investors’ interest.
“We have enough capital. In fact, we have used a fraction of the amount that we have raised. We don’t have to raise money now just because it is fashionable,” Snapdeal co-founder and CEO Kunal Bahl told reporters here.
Snapdeal has, so far, raised more than USD one billion, including funding from telecom giant Softbank (about Rs 3,762 crore) and Tata Group Chairman Emeritus Ratan Tata (personal investment).
Other investors include eBay, Tybourne, Myriad, Blackrock Inc, Temasek and Premji Invest.
“We have used our funds in a very efficient manner. Raising money is a full time job and we want to focus on our business. We want to bring entrepreneurs on board (who have products and solutions) because in the long term that will help sustain the business,” he said.
Snapdeal claims to have over 40 million registered users and one lakh sellers on board.
It competes with other marketplace players like Flipkart and Amazon.
PE firms and angel investors are aggressively funding start ups and Internet-led businesses in India, especially eCommerce, targeting higher returns in the years to come.
Reports suggest that Flipkart is in advanced talks to raise upto USD 800 million in fresh capital and may also look at an initial public offer in the coming months.
According to industry body IAMAI, the etailing market has grown at a CAGR (compound annual growth rate) of 33 per cent from Rs 2,372 crore in 2010 to Rs 10,004 crore in 2013. It further grew by 1.4 times to touch Rs 24,046 crore at the end of December, 2014.
The strong growth in the eCommerce market is being driven by increasing internet penetration and growing preference for online shopping in the country.