Snapdeal Buys Majority In Rupeepower
E-commerce marketplace Snapdeal has acquired a majority stake in digital financial distribution platform RupeePower for an undisclosed amount. Snapdeal’s entry into online financial services is a first for an e-commerce company in India. Following the deal, the SoftBank-backed Snapdeal will offer consumer loans through the RupeePower network. The online financial services market in India is estimated at Rs 4,500 crore. Founded in 2011, RupeePower has partnered 12 banks, including the State Bank of India, and non-banking financial companies. This network will be expanded after the acquisition. RupeePower does not lend on its own. The platform will have financial services such as personal loans, educational loans, credit cards, automobile loans, home loans, and extended warranties. RupeePower has disbursed loans worth Rs 1,500 crore, but Snapdeal co-founder and chief executive officer (CEO) Kunal Bahl said he was looking at Rs 6,000-crore lending in 24 months. For every loan to be processed through Snapdeal, banks and finance companies will have to pay a commission, which sources say will be three to four per cent of the loan.