Snapdeal to sell Tata Value Homes as it targets $2 billion in GMV
Snapdeal has entered into a strategic partnership with Tata Value Homes an affordable housing company, as it looks to increase the expand its offerings in a high stakes, winner-takes-all environment.
The relationship is to see that the Delhi- based e-commerce company Snapdeal offers apartment units from Tata Value Homes projects spread across Chennai, Bangalore, Mumbai, Ahmedabad, and Pune on their platform.
The co-founder & chief executive Kunal Bahl said that “We have a great opportunity to provide to our loyal customers the ability to purchase great houses at best prices from a quality company like Tata Value Homes.
The tie-up comes at a time when India’s e-commerce majors are frenetically adding to their product offerings, as they look to increase their customer base and take on the global behemoths like Amazon. Who entered the country’ burgeoning online commerce sector last year.
In July, Amazon Chief Executive Jeff Bezos officially announced a $2 billion war chest for its Indian division, which is being used to position the company as India’s top e-commerce company. Amazon is on track to record sales of over. Rs.6,000 crore in just over a year of operations in India.
Snapdeal will add nearly 10 new categories over the course of the coming months, as it attempts to touch $2 billion in gross sales. Bahl, however, refused to disclose a timeline when the company would touch the target.
This partnership with Tata Value Homes a real-estate company will also bring Snapdeal into a collision course with several real estate-focused online ventures currently existing in India.
In spite of overall global economic slowdown, Indian online real estate companies have continued to grow and have been popular with VC and PE investors.
Recently CommonFloor based in Bengaluru has risen. Rs. 64 crore from global top venture capital investors Tiger Global and Accel Partners, while Housing.com raised nearly 100 cr in April this year in a round led by Helion Venture Advisors.