The acquisition is in tune with Snapdeal’s aim to generate $2 billion in gross merchandise value from the fashion vertical in 2015, with Exclusively contributing about $100 million.
Snapdeal on Wednesday announced the acquisition of Exclusively, an online store for luxury fashion, for an undisclosed amount. Snapdeal, which raised $627 million from Japan’s SoftBank last October, has been aggressive in the fashion space of late. It had bought fashion product discovery platform Doozton last April.
The online fashion space is projected to reach $2.8 billion in 2016. Though Snapdeal declined to disclose further details, sources told FE it was a cash-and-stock deal that valued Exclusively at about $25-30 million.
Exclusively, which will now be wholly owned by Snapdeal, will continue to function as an independent website and a separate vertical, a company spokesperson said. Co-founders Mohini Boparai Guleria and Sanjay Guleria will be designated as general manager- creative and catalog and general manager – business at Exclusively, respectively.
The acquisition is in tune with Snapdeal’s aim to generate $2 billion in gross merchandise value (GMV) from the fashion vertical in 2015, with Exclusively contributing about $100 million. The company aims $1 billion in GMV from its latest acquisition in the next three years. At present, fashion contributes to 60% of the total volume of orders at Snapdeal.
Kunal Bahl, co-founder and CEO, Snapdeal, said: “We have witnessed a surge in the demand from consumers across the country for premium and luxury products, however, given that access to luxury brands is severely limited in our country, we have brought Exclusively to provide our 40-million-plus users the access to widest range of aspirational, high-end products and services.”
Ironically, Exclusively was owned by Myntra for a short while. Exclusively and its private label brand Sher Singh were sold to Myntra in November 2012 after having raised $18.8 million from Accel and Helion Partners. Back then, Exclusively focused on retailing Indian products abroad, especially the US and UK. However, since its international focus was not in tune with Myntra’s business model, Myntra retained the Sher Singh brand and sold off Exclusively back to its founder Sanjay Guleria in the second half of 2013. After the acquisition by Snapdeal, the portal that retails offerings from designers like Manish Malhotra, Tarun Tahiliani, Manish Arora, Anita Dongre, Rohit Bal and JJ Valaya, among others, is likely to offer international luxury and premium brands to the domestic audience. It plans to launch leading international luxury brands and designers in 2015.
Snapdeal forayed into the designer wear category in October last year with the launch of The Designer Studio.