India huge opportunity for eBay; leads $133m Snapdeal investment

Tags: eBay, SnapDeal, News
Aimed at tapping the "huge opportunity" in Indian e-commerce space, eBay is leading a $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 $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 $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.

Meanwhile, late yesterday night, both eBay and Snapdeal in separate statements said eBay was leading a new $133.77 million round of funding in Snapdeal, raising its stake in the company following an initial investment made in 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 said.

"We continue to invest in Snapdeal due to its complementary business model, good management team and strong brand," he added.

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."

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Lower home loan rates signal tough fight for market share

    Barely four weeks ago, a few public sector banks reduced interest rates on time deposit schemes by 10 to 25 basis points, depending on the tenure of t

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Tushar Gandhi

Could prohibition mean profiteering?

In the mid 1930s, an American journalist asked Bapu if ...

Zehra Naqvi

The five universal languages of love

Love is a universal language. Don’t we all believe that? ...

Dharmendra Khandal

Time to protect our endangered wildlife species

After 65 million years of existence, the earth’s biodiversity is ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture