What Is SnapDeal, and How Are They Competing with Amazon?


When you think about buying products online, the first site that comes to mind is likely Amazon.com ($AMZN). In the U.S., Amazon is bigger than Walmart, Kmart, Sears, Target, and every other major physical or online retailer. They are the company to beat, and while they’re only a couple of decades old, companies that were around for far longer are struggling to compete with their low prices, appealing services, and fast deliveries.

Yet Amazon isn’t the biggest company around the world. While they’re pretty much everywhere, they don’t have much of a presence in China, thanks to the success of Alibaba ($BABA) and other Chinese companies. Amazon is also in India (under the Amazon India banner), but they have to contend with homegrown, privately owned competitors.

While India’s Flipkart recently made a major dent in Amazon’s bottom line in India, SnapDeal is also cutting into the Washington company’s bottom line. The new(ish) company, based in New Delhi, sells more than 30 million products to over 6,000 locations around the country. For one of the world’s most populous countries, that’s nothing to scoff at.

But how is SnapDeal staying ahead of Amazon’s increased presence in India, and how are they growing in popularity? CNNMoney recently sat down with Kunal Bahl, the company’s CEO, to learn what could make SnapDeal the next Amazon or Alibaba.

While you can’t buy stock in SnapDeal right now, as they’re a private company, that doesn’t mean they won’t file for an IPO in the future. After all, Alibaba filed for an IPO a couple of years back, and the company grew immensely ever since. Going public would help SnapDeal reach more customers, more locations, and expand their business beyond their online marketplace like Amazon. If and when this happens, you can bet that investors and traders will jump at the chance to own a portion of this young company.