The founders of Snapdeal have turned a strategic investment into a massive financial success.
Snapdeal co-founders Kunal Bahl and Rohit Bansal transformed their initial investment of Rs. 57 lakh in Urban Company into a staggering Rs. 111 crore. The investment, made in the early stages of Urban Company, has yielded impressive returns, highlighting the potential of strategic investments in promising startups.
Urban Company, a leading home services marketplace in India, has grown significantly since its inception. The company’s expansion and success have resulted in substantial gains for its early investors, with the Snapdeal founders reaping considerable rewards from their foresight and financial acumen. This transformation from a modest investment to a multi-crore return underscores the dynamic and lucrative nature of India’s startup ecosystem.
Snapdeal might not have achieved the success initially envisioned, but its founders, Kunal Bahl and Rohit Bansal, continue to make significant strides in the field of angel investing.
The duo has recently exited their investment in Urban Company with a remarkable return. They had invested Rs. 57 lakh in the company back in 2015, and have now exited with Rs. 111 crore, yielding more than a 200x return on their original investment.
This lucrative exit was part of a $50 million secondary transaction at Urban Company, which also saw some employees offloading their stock options. Vamsi Duvvuri, founder and managing partner of Dharana Capital, will join the Urban Company board as a non-executive director.
“Urban Company has built an enduring and growing business with a strong foundation. We have been fortunate to be part of this journey from its earliest days, and immense credit is due to Abhiraj (Singh Bhal), Varun (Khaitan), and Raghav (Chandra) and their team for building it with great determination, resilience, and foresight,” Titan Capital said in a statement.
This isn’t the only time Bahl and Bansal have achieved significant returns through angel investments. While managing Snapdeal and competing with Flipkart and Amazon, they backed dozens of startups, reaping substantial rewards. Late last year, they each made Rs. 76 crore from their investment in Mamaearth when it went public, which was over a 100x return. They have also realized more than 100x returns on investments in Ola, OfBusiness, and Credgenics.
Since 2015, Kunal Bahl and Rohit Bansal have been investing through Titan Capital, which has funded over 300 startups. Titan Capital has recently raised money from limited partners to double down on its bets. Bahl and Bansal regularly appear in lists of India’s most prolific angel investors, likely earning several times more from investing than from running Snapdeal.
This strategy of diversifying investments across numerous startups has paid off for the Snapdeal founders. Instead of betting their futures on a single startup, they invested broadly in India’s startup ecosystem. While Snapdeal has faltered, their angel investments have delivered impressive returns, validating their involvement in the Indian startup space.