The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.
Ishan Dogra, MBA 2014-16, Vinod Gupta School of Management, IIT Kharagpur
On April 1, 2015, The Economic Times reported that, Snapdeal.com has acquired a majority stake in digital financial product platform RupeePower.com. The deal amount has not been disclosed by Snapdeal, but according to people aware of the deal, it is a cash and stock deal. This move has helped Snapdeal to become a part of 4500 crore financial services market in India.
RupeePower.com was started in the year 2011, by Tejasvi Mohanram, a former derivatives trader, with the aim of providing online loans, credit cards and other financial products. The company has partnered with government and private banks such as State Bank of India, ICICI Bank and Kotak Mahindra Bank to provide credit online and provided loans to the tune of INR 1500 crore in the FY 2014-15.
With this acquisition, SNAP deal can expect an increase in number of high-end purchases on its website as its customer could avail loans from RupeePower.com easily and buy high-end products on Snapdeal. However, according to Kunal Bahl, the founder of Snapdeal.com, the loan facility would not be limited to buying products on Snapdeal.com.
Apart from this, Snapdeal.com also provides credit facilities to it sellers under the ‘Capital Assist’ initiatives and has provided credit over INR 150 crore through this initiative. According to Bahl, RupeePower.com will take over the Credit Assist in the coming years. Going forward, RupeePower.com aims to become the No.1 online financial services, with the aim of providing loans to the tune of INR 6000 crore in the next two years.