eBay increases stake in Snapdeal with US$133.77 million funding
eBay had invested US$50 million in the e-commerce site in 2013. Total funds raised by Snapdeal so far reach US$200 millionBy Saloni Surti 27 Feb, 2014
eBay has announced leading a new US$133.77 million round of funding in Indian e-commerce website Snapdeal, raising its stake in the company. eBay had initially invested US$50 million in Snapdeal in 2013.
The recent round takes the total funds raised by Snapdeal so far to US$200 million. In addition to eBay, Snapdeal’s other investors such as Nexus Venture Partners, Kalaari Capital, Bessemer Venture Partners, Intel Capital and Saama Capital also participated in this round.
“Accelerating growth in India and other emerging markets continues to be a core strategy for driving eBay’s global e-commerce leadership. eBay is excited about the prospects ahead for both, Snapdeal and the eBay India business,” said Jay Lee, Senior Vice President and APAC Managing Director, eBay.
The investment comes close after Snapdeal’s rival Jabong raised nearly US$2.75 million from development finance institution CDC group and online marketplace Myntra raised US$50 million from PremjiInvest. Flipkart raised nearly US$360 million in two rounds last year.
“We see eBay’s second round of investment in Snapdeal as an endorsement of our strategy and progress. 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” said Kunal Bahl , Co-founder and CEO, Snapdeal.
With an aim to reach its US$1 billion turnover target, Snapdeal also entered into the e-service space with online education services. The website has partnered with e-learning websites to roll out the feature.
The Indian e-commerce space has entered a new phase of fierce competition, wherein websites such as Flipkart, Jabong, Myntra and Snapdeal are competing neck to neck.
Featured and Lead Image Courtesy: Snapdeal