NEW DELHI — Indian e-tailer Snapdeal on Wednesday revealed its acquisition of luxury fashion site Exclusively.com.
It is the sixth acquisition for Snapdeal, which is one of the biggest players in the fashion e-commerce space in India, along with Myntra and Jabong. Snapdeal is an online marketplace and about 60 percent of its total sales are in fashion. A spokeswoman said the company aims to reach $2 billion in sales in fashion by the end of the year.
Snapdeal has been adding investors over the past year —in October, the company raised $627 million from Japanese telecom and Internet giant SoftBank.
“We have witnessed a surge in the demand from consumers across the country for premium and luxury products,” said Varun Bahl, cofounder of Snapdeal. “However, given that access to luxury brands is severely limited in our country, we have brought Exclusively into our family to provide our 40 million users the access to the widest range of aspirational, high-end products and services.”
Exclusively.com stocks the collections of more than 150 Indian designers, and caters to a market segment that Snapdeal has not pursued aggressively so far, with pricing starting from an average of $160 and up in India and of more than $240 outside.
“It’s astonishing how fast this market is growing,” Sunjay Guleria, cofounder of Exclusively, told WWD. “We expect to be worth $100 million by [the] end [of] 2015. We have a very clear mandate of growing the luxury segment.”
Guleria and Mohini Boparai-Guleria, Exclusively’s other cofounder, will join Snapdeal as general manager, business; and general manager, creative and catalogue, respectively, at Exclusively.com.
Guleria said the additional funds would be used to develop and promote Indian designers and grow the space for global brands to launch in India.
A spokesman for Snapdeal said Exclusively would continue to function as a separate vertical within Snapdeal. The target is for Exclusively to scale up to $1 billion in sales within the next three years.
The fashion e-tail sector in India has seen a number of deals over the past year. In May, Flipkart, India’s biggest e-commerce company valued at $11 billion, acquired Myntra, the biggest fashion e-tailer, for 20 billion rupees, or $321.5 million at current exchange.
According to industry analysts, the fashion e-tail category in India is estimated to be worth about $20 billion, and is expected to continue to see double-digit growth for the next five years.