Snapdeal Success Story: 5 Valuable Lessons for Every Entrepreneur

Introduction

Founded in 2010 by Kunal Bahl and Rohit Bansal, Snapdeal started as a daily deals platform but soon pivoted to become one of India’s first major online marketplaces. This transformation wasn’t just strategic—it was visionary. While most players in the early 2010s focused on affluent metro users, Snapdeal zeroed in on the massive, underpenetrated value-conscious consumer base residing in India’s Tier 2 and Tier 3 cities.

At its peak in 2015, Snapdeal was processing over 1 million orders per day, listing more than 35 million products, and connecting over 300,000 sellers to millions of customers across 6,000+ towns and cities in India. This hypergrowth phase also saw Snapdeal raise nearly $2 billion in funding from global investors like SoftBank, Alibaba, and Temasek.

However, the journey wasn’t linear. The company faced severe setbacks around 2016–2017 due to hyper-competition, over-diversification, and a failed merger with Flipkart. Rather than folding, the founders doubled down and launched “Snapdeal 2.0”—a bold pivot back to basics with a laser focus on value-driven commerce.

In a candid interview, co-founder Kunal Bahl explained:

“We realized there was a Bharat that was shopping differently, thinking differently. Our job wasn’t to change them, it was to serve them better.”

Snapdeal’s story is ultimately about grit, humility, and re-alignment. In a sector dominated by cash-heavy giants like Amazon and Flipkart, Snapdeal chose a path that was customer-first, asset-light, and deeply rooted in India’s socio-economic diversity. For entrepreneurs, it offers a compelling case study on market fit, strategic pivots, and resilient leadership.

Origin Story

Kunal Bahl, an alumnus of Wharton School of Business, and Rohit Bansal, a graduate of IIT Delhi, started Snapdeal in 2010 as a daily deals platform akin to Groupon. At that time, India’s internet ecosystem was in its infancy, and most online ventures were catering to urban, tech-savvy customers. However, by closely observing customer behavior and merchant needs, the founders realized that India’s true market potential lay far beyond the metros.

In a pivotal move in 2012, Snapdeal transitioned from being a daily deals site to a full-fledged online marketplace. This decision wasn’t just a business pivot—it was a strategic response to a larger truth about India. “We noticed a pattern: while others chased premium customers, there was a much larger base being ignored—people who needed value, not luxury,” Kunal noted in an interview. This became the cornerstone of Snapdeal’s value-commerce vision.

The founders imagined Snapdeal as more than just a transactional platform. It was a bridge connecting thousands of small and medium sellers—many new to digital commerce—to millions of customers looking for affordability and reliability. In doing so, Snapdeal positioned itself as a champion of “Bharat,” bringing accessible e-commerce to the doorstep of everyday Indians across Tier 2 and Tier 3 cities.

Business Landscape and Challenges

As Snapdeal expanded, the e-commerce landscape in India underwent a dramatic transformation. Global behemoth Amazon entered the Indian market in 2013 with massive financial firepower, while Flipkart, already a domestic favorite, was aggressively enhancing its supply chain and customer experience. The race quickly escalated into a high-stakes battle involving deep discounts, celebrity endorsements, and billions in venture capital.

Snapdeal, having scaled rapidly and diversified into various verticals such as mobile wallets, logistics, and luxury fashion, soon found itself overextended. While the company had attracted prestigious investors like SoftBank, Alibaba, and Foxconn, the burn rate rose and focus dwindled. The situation culminated in a failed merger attempt with Flipkart in 2017—a move that was widely viewed as the last shot at competing at scale.

Rather than fold, the founders made a daring decision to go back to their roots. Under what they called “Snapdeal 2.0,” the company underwent a sweeping internal transformation. Non-core businesses were shut down or divested, over 80% of the product catalog was streamlined, and operational costs were slashed. This was not a retreat, but a recalibration.

“It wasn’t about being everything to everyone. It was about being meaningful to someone,” Kunal reflected. This strategic clarity and renewed focus on value-conscious consumers outside the metros allowed Snapdeal to stabilize, rebuild its identity, and reclaim its relevance in a hypercompetitive market.

Growth Strategies

Snapdeal’s resurgence post-2017 wasn’t accidental—it was the result of carefully considered strategic decisions anchored in efficiency, customer insight, and sustainable scalability. The most impactful of these was the adoption of an asset-light business model. Rather than investing heavily in warehouses or managing complex inventories, Snapdeal empowered its vast seller base to fulfill orders directly. This shift reduced operational overhead and allowed Snapdeal to expand its reach without incurring the massive capital costs typically associated with logistics-heavy e-commerce models.

Another key growth lever was technology-driven optimization. Snapdeal made significant investments in its backend systems, using machine learning algorithms to fine-tune everything from product recommendations to supply chain efficiencies. Automated tools helped sellers improve product listings with better imagery, descriptions, and dynamic pricing suggestions. These advancements not only enhanced the consumer experience but also made the platform more efficient and scalable.

To ensure affordability, Snapdeal established direct relationships with manufacturers across categories like home goods, fashion, electronics, and kitchenware. By cutting out intermediaries, the platform could offer quality products at significantly lower prices, strengthening its appeal to value-conscious consumers in Bharat.

Internally, Snapdeal underwent a cultural transformation. The company fostered a high-trust, high-speed environment focused on accountability and mission clarity. Teams across functions were aligned around one core objective: to make high-quality products accessible to India’s heartland, where price sensitivity and trust play crucial roles in purchasing decisions. This single-minded focus gave Snapdeal a renewed sense of purpose and competitive edge in the crowded e-commerce space.

Marketing Strategy

Snapdeal’s marketing pivot mirrored its business strategy—practical, focused, and deeply tuned into the Indian consumer psyche. While other platforms spent aggressively on Bollywood celebrities, IPL sponsorships, and prime-time advertising, Snapdeal chose a grassroots, regional-first approach that prioritized connection over glamour.

Recognizing the linguistic and cultural diversity of India, Snapdeal developed hyperlocal campaigns in vernacular languages, catering specifically to users in Tier 2, Tier 3, and even Tier 4 cities. Instead of using mainstream influencers, the brand partnered with micro-influencers who had authentic relationships with their regional audiences. These collaborations helped communicate Snapdeal’s core value proposition in a more relatable and trustworthy manner.

The brand’s creative strategy was built around relatability, utility, and simplicity. Campaigns featured common family scenarios, local festivals, and everyday savings, reinforcing Snapdeal as a part of the consumer’s daily life rather than a luxury aspirational platform. Their popular tagline-driven campaigns, such as “Unbox Zindagi,” resonated with emotional warmth and a sense of upward mobility.

On social media, Snapdeal kept its tone conversational and grounded. It used polls, regional memes, and festival-specific creatives to stay culturally relevant and generate engagement. This digital-first, audience-centric approach helped build a brand that customers felt spoken to, not targeted by.

As Rohit Bansal aptly put it,

“We weren’t trying to be flashy. We wanted to be familiar.”

That familiarity—built through understanding and respect for the consumer’s needs—became the cornerstone of Snapdeal’s renewed identity and enduring appeal.

5 Valuable Lessons for Every Entrepreneur

1. Embrace Adaptability

Snapdeal’s transformation from a daily deals site to a full-fledged e-commerce marketplace—and eventually to a focused value-commerce platform—is a testament to the power of strategic agility. Markets shift, consumer behavior evolves, and competition intensifies.

Instead of clinging to a dated model, Snapdeal pivoted boldly at critical junctures. For entrepreneurs, this underscores the importance of reading the market with clarity and acting with conviction. Change isn’t just inevitable—it’s often the bridge to your next big opportunity.

2. Focus on Core Strengths

At its peak, Snapdeal ventured into a variety of verticals—from logistics and payments to luxury retail. However, this diversification spread its resources thin and diluted its core value proposition. The company’s “Snapdeal 2.0” initiative brought it back to basics—offering quality, affordable goods to India’s value-conscious shoppers.

This razor-sharp focus helped streamline operations, improve profitability, and re-establish brand relevance. Entrepreneurs must identify their unique strengths and double down on them, rather than chasing every trend.

3. Cultivate a Resilient Culture

When faced with mounting challenges—financial pressures, operational inefficiencies, and a failed merger—Snapdeal didn’t crumble. Instead, the founders led a company-wide cultural reset. They instilled a renewed sense of ownership, streamlined decision-making, and fostered alignment around a shared mission.

A resilient culture becomes your company’s safety net during crises. For startups and scale-ups alike, cultivating a workforce that is agile, accountable, and mission-driven can be the difference between rebound and collapse.

4. Leverage Technology for Efficiency

Rather than investing in capital-heavy infrastructure, Snapdeal used technology as its primary growth enabler. From machine learning algorithms that improved customer recommendations to supply chain automation that enhanced delivery timelines, Snapdeal used smart tech to solve real problems.

This tech-first approach allowed the company to scale rapidly and sustainably. For entrepreneurs, this is a key lesson: technology should not be treated as a buzzword or luxury—it’s a strategic asset that, when used wisely, multiplies impact.

5. Understand Your Audience

Snapdeal’s revival wasn’t fueled by celebrity endorsements or high-end branding. Instead, it thrived by deeply understanding the needs of Bharat—India’s aspirational yet budget-conscious middle.

Campaigns were delivered in local languages, tailored for regional sensibilities, and promoted by micro-influencers who had genuine trust with their communities. For entrepreneurs, customer obsession means more than analytics and surveys—it requires empathy, cultural alignment, and a willingness to listen.

Conclusion

Snapdeal’s journey isn’t one of overnight success or meteoric valuation. It is a story shaped by grit, grounded decisions, and a relentless focus on solving real-world problems. From its humble beginnings as a deals platform to surviving a near-collapse and emerging stronger, Snapdeal exemplifies what it means to build a business for the long haul.

As Kunal Bahl wisely reflected,

“Success is not about how fast you rise—it’s about how well you bounce back.”

For entrepreneurs, Snapdeal offers more than a case study—it offers a roadmap. A roadmap that values clarity over chaos, resilience over recklessness, and customer value over vanity metrics. In a world obsessed with hypergrowth, Snapdeal reminds us that long-term success is built on purpose, perseverance, and people.