Snapdeal, one of a leading e-commerce company in India is expecting to raise fresh $200 million which is around Rs.123 crores INR. As per reports eBay, SoftBank and few private equity investors are willing to invest $150-200 million in fresh round of Snapdeal’s funding.
Meanwhile there is no official confirmation from Snapdeal or eBay but the reliable sources says that this round of funding is anywhere close to $150-200.
Earlier this year eBay had taken around 10% stake in Snapdeal and as per speculation keen to increasing that stake in the Indian e-commerce company. Other expected investors looking to invest in Snapdeal is SoftBank.
This year Snapdeal has received 3 rounds of funding totaling to $102 million. In January 2011, round 2 of funding Snapdeal received a funding of $12 million from Nexus Venture Partners and Indo-US Venture Partners. In July 2011, the company raised a further $45 million from Bessemer Venture Partners, along with existing investors Nexus Venture Partners and Indo-US Venture Partners. In a 3rd round of funding Snapdeal raised $50 million from eBay and received participation from existing investors – Bessemer Venture Partners, Nexus Venture and IndoUS Venture Partners.
Just a week before leading most e-commerce company Flipkart raised $160 million which made its total funding this year of around $360 million i.e. whopping Rs. 22219 crores and thus this investment made Flipkart a largest investment raised by any e-commerce company in India ever.
The news of Snapdeal raising a fresh round of funding just after week of Flipkart’s $160 million funding is clear sign that a stiff competition has started in Indian E-Commerce arena.
This year Snapdeal is vigorously doing acquisitions and funding rounds as well so as to compete with other portals in its niche especially Flipkart. In June 2010, Snapdeal acquired Bangalore-based group buying site – Grabbon.com and in April 2012, Snapdeal acquired esportsbuy.com, an online sports goods retailer based out of Delhi and this year in May 2013, Snapdeal acquired Shopo.in, an online marketplace for Indian handicraft products.
Snapdeal.com expects the total sale of products traded on its platform to cross Rs 2,000 crore in the fiscal 2013-14 helped by its robust growth in the past two years and the growing popularity of e-commerce in India.