Exclusive: Snapdeal raises $50 million from eBay and existing investors
Exclusive: Delhi based online marketplace, Snapdeal has raised $50 million from eBay and existing investors; including a Japan based financial institution, according to two sources close to the deal.
The investment which was closed around 4 months back was led by eBay and received participation from existing investors – i.e. Bessemer Venture Partners, Nexus Venture and IndoUS Venture Partners. With this round, Snapdeal has raised total of $102 million of funding.
One of the sources told us that eBay looked at around 40 companies in India to invest, and found good synergies with Snapdeal, especially owing to its marketplace model. The deal is one of the biggest investment raised by any ecommerce firm in last 8-10 months.
Earlier in 2012, Snapdeal raised $40mn from Bessemer Venture Partners, Nexus Venture and IndoUS Venture Partners. Prior to that, Nexus Venture Partners and Indo US Venture Partners had put in $12 million in the company.
Why eBay is interested in Snapdeal?
eBay has close to $10bn of surplus cash to be deployed outside US and while Indian arm is mostly a C2C model, the company needs to have a BIG presence in Indian ecommerce market (before Amazon does).
Plus, Snapdeal’s focus on marketplace model (they pivoted from daily deals to marketplace model in early 2012) is one of the biggest attraction for eBay, which expects (globally) to achieve revenues of $10.5 billion – $11.5 billion in 2015 from marketplace model.
Snapdeal has cracked a few verticals like fashion, and importantly stayed under the radar for the last 2 years (ofcourse, they were the ones who started the TVC ads).
Snapdeal : A Quick Timeline
- In April 2012, Snapdeal pivoted to a marketplace model to focus on product business more and moved away from daily deals business.
- In January this year, we reported that eBay is likely to invest in Snapdeal.
- Recommended Read : Snapdeal Story : Of Failed Experiments & A Lean Startup Story.
Recent funding in Indian Ecommerce Space
- Earlier, Valyoo Technologies, the e-commerce company which runs LensKart, BagsKart, WatchKart and JewelKart raised $10 million from UTV founder Ronnie Screwvala’s Unilazer Ventures Limited and IDG Ventures.
- Besides Valyoo, managed marketplace ShopClues had raised $10 mn from Helion Venture Partners, Nexus Ventures and Netprice.com Chief Executive Officer Teruhide Sato.
- Gurgaon based HealthKart, which sells consumer healthcare goods online raised $14 million in series B funding from Intel Capital and Sequoia Capital.
- LadyBlush raised funding from Rocket Internet.
A video from Snapdeal Interview :