Intended to tap the “huge opportunity” in Indian e-commerce space, eBay is coxswaining a Rs 830 crore investment in online market place Snapdeal.
The US-based firm led a group of investors together with Kalaari Capital, Nexus Venture Partners, Bessemer Venture Partners, Intel Capital and Saama Capital to finance in the New Delhi-based Snapdeal.
Previous year in April, Snapdeal had raised $50 million from eBay-led group of investors.
Following this round of funding, the total investments raised so far by the homegrown online marketplace rose in excess of 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 alleged in a Twitter post.
“Multiple brands working together improves overall chance of success. We’ve done same successfully in other markets,” he supplemented.
Growing wealth, acceptance of technology and smartphone penetration will help the e-commerce market in the world’s second most populous country, Wenig held.
“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 furthered.
In the interim, late yesterday night, both eBay and Snapdeal in separate statements said that eBay was maneuvering a new $133.77 million round of funding in Snapdeal, raising its stake in the company following an initial investment made in Fiscal 2013.
Accelerating growth in India and other emerging markets continues to be a core strategy for driving eBay’s global e-commerce leadership, eBay Senior VP and APAC Managing Director Jay Lee purported.
“We continue to invest in Snapdeal due to its complementary business model, good management team and strong brand,” he maintained.
Taking Note of the deal, Snapdeal co-founder and CEO Kunal Bahl said that: “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.”