By When Snapdeal was in news of getting merged with Indian e-commerce giant Flipkart, Emergency funding to Snapdeal by its founders and Nexus Ventures came up and became the hot topic for Media and Startup World. On 30th of May, Snapdeal got a surprise funding of Rs. 113 crore from its Investor Nexus Ventures (96.3 Crores) and owners Kunal Bahl and Rohit Bansal (roughly 8.5 Crores each). As Japan’s Softbank- the largest stakeholder in Snapdeal had proposed the Merging news of Snapdeal with e-commerce giant Flipkart, the other investors: Kalaari Capital, Nexus Ventures and Owners of Snapdeal are not much in favor of this decision.
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Due to this reason where Media is assuming that Recent funding could be the reason to affect the proposed sale of Snapdeal with Flipkart. Dropout Dudes’ view on this topic is: Under Such Situation, Snapdeal took the right decision of getting funded by its own Investors and owners. If we see this in another aspect, We can say that Snapdeal has Bootstrapped itself once again by investing their own investment to Revamp.
Here are some points that need to know before going on any further result:
1) What is bootstrapping?
Bootstrapping is a situation in which an entrepreneur starts a company with personal finances. Bootstrapping can be beneficial if an entrepreneur maintains control over all decisions. They need to know how to manage people, how to build things, how to acquire early customers etc., before starting to look out for investors. By bootstrapping and being profitable & scalable, a startup will have higher chances of being chased by investors and get backed at higher valuations.
2) Why Snapdeal was right in revamping themselves & bootstrapping?
Since the news of Emergency funding heated up the Entire Media & Startup World, People forgot to notice that It is not the first attempt of Snapdeal to Revamp themselves. They have started the Rebranding in September 2016 with their new logo and campaign named Unbox Zindagi. Throwing their red-and-blue logo out, the six year old company has moved on to a new logo- a red box.
The rebranding is sure to give a boost to Snapdeal in its on-going race against Amazon and Flipkart , both which claim to be market leaders.
At some point of time Conglomerate giants like PepsiCo have gone through rebranding. The point being Snapdeal is still considered startup by a lot of people, it’s hard to digest for them that, they spent crores on their revamping. With changing market and consumer Base startups, Revamping become the necessity of the Startup. And in Such Scenario if Snapdeal took the decision of this Surprise funding, we think it’s totally appreciable and Startup world should take it in positive aspect.
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