Snapdeal buys RupeePower, says no need to raise funds
Move aims at creating more liquidity for consumers via RupeePower, which acts as a match-making platform between lenders and borrowers
New Delhi: In a move to create more liquidity for consumers, Snapdeal.com, one of India’s largest online marketplaces, has bought a majority stake in online financial services company RupeePower in cash and stock, the companies said on Tuesday.
Snapdeal, promoted by Jasper Infotech Pvt. Ltd, did not disclose the financial details of the deal.
“We want to create the largest financial services marketplaces in India,” said Snapdeal co-founder and chief executive officer (CEO) Kunal Bahl. He said the online financial services opportunity in the market is estimated to be $30 billion by 2020.
Snapdeal already provides capital support to its sellers via its platform Capital Assist. “Alibaba has done this in China to create credit availability in the market,” said Bahl.
RupeePower acts as a match-making platform between lenders and borrowers. The marketplace will include a wide range of financial services such as personal loans, educational loans, credit cards, auto loans, home loans and extended warranties among others.
Founded in 2011, RupeePower has enabled Rs.1,500 crore of credit disbursal during fiscal year 2014-15 and expects to disburse close to Rs.6,000 crore of credit in the next 24 months.
“The share of digital origination of credit is poised to grow from today’s 7.5% to 40% over the next four years, in a Rs.400,000 crore (Rs.4 trillion) retail credit market growing at 20% annually,” said Tejasvi Mohanram, founder and CEO, RupeePower.Snapdeal has been on a shopping spree after it received $627 million from Japanese investor SoftBank Corp. in October. Earlier this month it bought a 20% stake in logistics firm Gojavas for Rs.120 crore, and closed the acquisition of Unicommerce, an e-commerce management software and fulfilment solution provider.
The company is also close to announcing the acquisition of online recharge and couponing portal FreeCharge, Mint reported on 12 March.
Separately, Bahl said Snapdeal was in no hurry to raise fresh funds although there is continuing investor interest. “We haven’t even touched the SoftBank money yet,” he said, adding that the company had enough money in the bank.