Snapdeal.com, a daily deals website in the e-commerce market has acquired Delhi based eSportsbuy.com, an e-retailer of sports goods and fitness equipment.
eSportsBuy was started about a year ago by Prateek Agarwal and Amit Monga, both of whom are graduates of Indian Institute of Technology and have worked with companies such as Amazon and IBM. The company made rapid progress and built a wide range of quality sports products across national and international brands.
Earlier in February this year, Iamwire had reported about Snapdeal’s interest in acquiring a small-to-mid-size portal that will allow it to expand beyond the group buying space.
According to Kunal Bahl, CEO of Snapdeal.com, “Indian sports goods market is slated to become a $2.7 billion industry by 2014, and given that the offline market for this sector is highly fragmented and unorganized, it is a great opportunity for an e-commerce player such as Snapdeal, to bridge the gap in demand and supply. The team at eSportsbuy has done a great job in building a strong supply side network of sports and fitness products. Through this acquisition, we will be able to provide a wide assortment at great prices to Snapdeal’s 15 million members.”
Snapdeal was founded by Kunal Bahl and Rohit Bansal in 2010 and had revenues of over Rs.80 Crores in FY 2011-12. Earlier in 2010, Snapdeal had acquired Bangalore-based group buying site, Grabbon.com for an undisclosed amount and had raised over $52 million in 2011 in 2 separate deals from Bessemer Venture Partners, along with Nexus Venture Partners and IndoUS Venture Partners.
According to an earlier report by ICRIER, the overall sports products retail industry in India is growing at between 20-25% and is expected to perform even better over the coming years driven by an increase in discretionary spends by users, which is expected to rise from $1 billion in 2005 to about $6 billion by 2025.Category Investments News