New Delhi, Feb. 27 (PTI): eBay is leading a $133.77 million (about Rs 830 crore) investment in online market place Snapdeal, aimed at tapping the “huge opportunity” in the Indian ecommerce space.
The US-based company led a group of investors, including Kalaari Capital, Nexus Venture Partners, Bessemer Venture Partners, Intel Capital and Saama Capital, to invest in the New Delhi-based Snapdeal.
Last year in April, Snapdeal had raised $50 million from an eBay-led group of investors.
After this round of funding, the total investments raised by the homegrown online marketplace rose to over $235 million (about Rs 2,457 crore).
“We are excited to grow eBay India under a great management team and to invest in the complementary marketplace Snapdeal. India is a huge opportunity,” Devin Wenig, eBay president, marketplaces, said in a Twitter post.
“Multiple brands working together improve the overall chance of success. We’ve done the same successfully in other markets,” he added.
Growing wealth, acceptance of technology and smartphone penetration will help the ecommerce market in the world’s second most populous country to grow, Wenig said.
Late yesterday night, both eBay and Snapdeal in separate statements said eBay was leading a new $133.77 million round of funding in Snapdeal, raising its stake in the company following an initial investment made in 2013.
Accelerating growth in India and other emerging markets continue to be a core strategy for driving eBay’s global ecommerce leadership, eBay senior VP and APAC managing director Jay Lee said.
“We continue to invest in Snapdeal because of its complementary business model, good management team and strong brand,” he added.
On the deal, Snapdeal co-founder and CEO Kunal Bahl said: “All our current institutional investors, including Kalaari Capital, Nexus Venture Partners, Bessemer Venture Partners, Intel Capital and Saama Capital, have participated in this round as well which is a strong endorsement of our team.”
With revenues expected to clock $500 million this fiscal ending March 31 and targeted revenues of $1 billion by March 2015, Snapdeal is also eyeing a listing on the US bourses to raise capital.
Launched in 2010, the company, with a headcount of over 1,000 people, offers products across more than 500 product categories through 20,000 sellers and delivers to more than 4,000 cities in India.