After picking up a minority investment in Snapdeal for $50 million last year, eBay led another round of funding in the marketplace based in India. eBay led an approximate $133.77 million round of funding as part of its strategy to accelerate growth in emerging markets.
eBay said it chose to increase its investment in Snapdeal due to the company’s complementary business model, good management team and strong brand. eBay and Snapdeal will continue to work separately.
Snapdeal.com launched in 2010 as a daily deals site and expanded the next year to a marketplace platform. Wall Street analyst Colin Sebastian of Robert W. Baird said he sees such investments as leading to cross-border synergies. That’s something eBay has been focused on in recent years with an emphasis on BRIC countries (Brazil, Russia, India and China).
All of Snapdeal’s current institutional investors including Kalaari Capital, Nexus Venture Partners, Bessemer Venture Partners, Intel Capital and Saama Capital participated in the round.
In an announcement, eBay Senior Vice President and APAC Managing Director Jay Lee said, “Accelerating growth in India and other emerging markets continues to be a strategy for driving eBay’s global e-commerce leadership. eBay is excited about the prospects ahead for both Snapdeal and its own eBay India business.”