How Kunal Bahl & Rohit Bansal Made Mns Despite Snapdeal's Losses?
- Jasaro In
- Jul 26
- 4 min read
The Paradox of Startup Success
What if we told you that a startup could burn through ₹11,500 Crore (~$1.33 Bn) in losses, fail to compete in its core market, and still make its founders multi-millionaires?
Welcome to the curious case of Snapdeal, one of India's most fascinating startup stories.
Founded in 2010 by Kunal Bahl and Rohit Bansal, Snapdeal was once the darling of Indian e-commerce, hailed as a formidable rival to Flipkart and Amazon.
Fast forward to 2025, and Snapdeal is now gearing up for an IPO, despite shrinking revenues, stalled growth, and over a decade of financial bleeding. Yet, the founders are thriving, running a successful VC firm, and reportedly worth millions in personal wealth.
How did this happen?
How can a failed startup produce wildly successful founders?
Let’s unpack what went wrong with Snapdeal, and what early-stage entrepreneurs can learn from it.
Kunal Bahl & Rohit Bansal: Snapdeal from Groupon Clone to E-Commerce
The Early Pivot That Paid Off
Snapdeal’s journey began with a smart move: replicating the Groupon model in India.
Daily deals were the rage in 2010, and Kunal Bahl spotted the trend early.
But when Groupon stumbled globally, Snapdeal pivoted into e-commerce.
This was a savvy move, India’s internet economy was just getting started, and online marketplaces were booming.
Raising Billions, Riding the VC Wave
From 2010 to 2017, Snapdeal rode the venture capital gravy train like few others.
By 2014: Raised $250 Mn.
By 2017: Cumulative VC funding reached $1.6 Bn.
Total Funding: Over $1.8 Bn.
With SoftBank, Kalaari, and Nexus as backers, Snapdeal looked like a unicorn built for greatness. At its peak, Snapdeal was valued at $6.5 Bn, and vying head-to-head with Flipkart and Amazon in India.
The Fall: When Capital Isn't Enough
Death by Discounts: The Unsustainable Model
Snapdeal’s growth was largely driven by one strategy: deep discounts.
This tactic worked well initially but quickly became unsustainable. Here’s why:
Heavy burn rates eroded margins.
Zero customer loyalty, shoppers chased discounts, not the brand.
VC money funded sales, not sustainability.
Unlike Amazon’s logistics-driven moat or Flipkart’s category expansion, Snapdeal failed to build a defensible edge.
Operational Chaos and Poor Execution
Snapdeal’s execution was riddled with issues:
Late deliveries.
Poor product quality.
Customer complaints piling up.
Seller mismanagement.
These are cardinal sins in e-commerce, where trust is everything.
Identity Crisis and Market Confusion
Snapdeal lacked a clear differentiator.
Was it a value-driven marketplace?
A tech platform? or
A discount aggregator?
The brand never carved out a unique identity, leaving it stranded in the middle of the market, squeezed from both ends.
The Implosion: The Missed Flipkart Merger & Strategic Missteps
The Flipkart Deal That Never Was
In 2017, Snapdeal had a lifeline, a proposed acquisition by Flipkart, backed by major investors. The deal could have:
Recovered some VC funds.
Helped Snapdeal exit gracefully.
United two local players against Amazon.
But the founders blocked it.
Why? Reports suggest ego, control, and vision differences led them to walk away. This move angered investors and sent Snapdeal into a tailspin.
Fire Sales and Asset Liquidation
Once the funding tap dried, Snapdeal sold off non-core assets at massive discounts:
Freecharge: Acquired for $400 Mn, sold to Axis Bank for $60 Mn.
Several other acquisitions: Sold at ~80% haircuts.
And yet, through these sales, Snapdeal somehow retained ₹2,000 Cr in cash reserves.
The Twist: Founders Who Won, Despite the Company Losing
Enter Titan Capital, A VC Firm Built on Burnt Ground
Here’s where the story gets truly fascinating.
While Snapdeal floundered, Kunal Bahl and Rohit Bansal launched Titan Capital, a venture firm focused on early-stage startups with solid unit economics. They reinvested capital (and lessons) from Snapdeal into promising startups, scoring several profitable exits. Reports estimate Titan’s portfolio delivered $200M+ in gains, a massive win by any VC standard.
Salaries, Stock, and the Startup Game
It doesn’t stop there. During Snapdeal’s loss-ridden years, the founders drew salaries between ₹5 Cr to ₹50 Cr per year, despite the company hemorrhaging cash. From a traditional lens, this seems absurd, how can executives benefit while shareholders lose? But in the world of venture capital, where growth trumps profit, such outcomes are not uncommon.
Lessons for Entrepreneurs: What Snapdeal Teaches Us
1. Raising Money ≠ Building a Business.
Snapdeal shows how funding can mask operational flaws, temporarily.
Don’t confuse VC capital with product-market fit.
2. Unit Economics Matter.
Titan Capital, ironically, now invests in startups with tight control on unit economics, a lesson Snapdeal learned the hard way.
Cash burn without margin discipline leads to unsustainable businesses.
3. Founders Must Have Skin in the Game.
Snapdeal's saga also highlights the risk of low founder accountability.
When success is measured by capital raised and exits made, not customers served, the system encourages misalignment.
4. Narrative is Everything.
Despite Snapdeal's fall, its founders controlled the narrative, repositioning themselves as wise investors and ecosystem builders.
In the startup world, optics matter almost as much as operations.
Conclusion: Snapdeal’s IPO, A Comeback or a Cautionary Tale?
Now, in 2025, Snapdeal is going public. Its FY24 report shows:
Revenue: ₹384 Crore (~$44 Mn)
Losses: ₹160 Crore.
Growth: Minimal.
This isn’t a turnaround story, it’s a repackaging of a long-declining asset.
But here's the kicker: Snapdeal is still one of the top 5 marketplaces in India, and its founders are VC moguls with serious street cred.
So is this the end of Snapdeal, or just another pivot in disguise?
Time will tell.
For aspiring entrepreneurs, Snapdeal's story is a paradox wrapped in a pitch deck:
You can fail at business, succeed at branding, and still walk away rich, if you understand how capital, control, and storytelling work.
But if you truly want to build a sustainable, impactful business, don’t chase vanity metrics.
Focus on value creation, customer trust, and cash flow.
VCs may come and go, but fundamentals never go out of style.
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