Launched in 2010, Snapdeal, with a headcount of over 1,000 people, offers products across more than 500 categories via 20,000 sellers and delivers to more than 4,000 cities
New Delhi : Aimed at tapping the “huge opportunity” in Indian e-commerce space, eBay is leading a USD 133.77 million (about Rs 830 crore) investment in online market place Snapdeal.
The US-based firm 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 USD 50 million from eBay-led group of investors. After this round of funding, the total investments raised so far by the homegrown online marketplace rose to over USD 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,” eBay President Marketplaces Devin Wenig said in a Twitter post.
“Multiple brands working together improves overall chance of success. We’ve done same successfully in other markets,” he added. Growing wealth, acceptance of technology and smartphone penetration will help the e-commerce market in the world’s second most populous country, Wenig said.
“India market growth will accelerate, helped by improvements in payments, delivery, and smartphone penetration. Growing wealth, high acceptance of technology, commerce arbitrage and other factors driving exceptional growth rates in Indian digital commerce,” he added. eBay Senior VP and APAC Managing Director Jay Lee said. “We continue to invest in Snapdeal due to its complementary business model, good management team and strong brand.”
Commenting 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 and targeted revenues of $1 billion by March 2015, Snapdeal is also eyeing a listing on US bourses.