eBay is rumored to pick up a significant stake in Snapdeal, which earlier raised $40mn from Bessemer, Nexus and IndoUSVenture Partners in July 2011.
The company started as a deal site and later pivoted to a pure-play ecommerce company (marketplace model) in 2012.
“Ebay is looking to make a strategic investment in Snapdeal, a move that is expected to help both sides”. Details of the transaction are still being worked out, but sources said it will likely be carried out through eBay’s Indian arm and structured in a manner that it does not violate the current norms prohibiting foreign investment in online retailers.[source:HT]
The eCommerce industry in India has seen a multifold increase in the past three years, with the total market size increasing from Rs 19,688 crore by the end of 2009 to an estimated Rs 28,500 Crore ($6.3 billion) in 2011 and Rs. 76,300 crore ($14 billion) in 2012.
In 2012, 52 eCommerce companies have raised close to $700 million venture capital over the past 3 years and out of them, only 30 % could raise the next round of funds [read: What e-commerce in India looks like [Recap 2012]) and very recently, we reported executive level exodus at ibibo owned Tradus.
Recommended Read: Ecommerce Marketplaces in India : Crawford Market Vs Bigbazaar?