Online marketplace Snapdeal seems to have finally closed its $50 million (Rs 280 crore) investment round from eBay Inc, Recruit Co, new investors like Intel Capital, Saama Capital and the Russian venture firm, ru-Net, reports The Economic Times.
The report states that the round also saw participation from existing investors like Nexus Venture Partners, Bessemer Venture Partners and IndoUS Venture Partners and a few angel investors like the founders of the US-based The FreshMarket and others. The company plans to use the investment raised to improve its technology backend. This investment has been doing the rounds since January 2013, however it wasn’t confirmed until earlier this week, when it was indicated that eBay has inked a deal with Snapdeal to secure a stake in the company and also get access to Snapdeal’s user base, logistics software, and distribution network.
Speaking to ET, Snapdeal Co-founder Kunal Bahl said that they had split the investment into two parts – the first part was led by eBay Inc and Japan’s Recruit Co in April and the second part was led by Intel Capital, Saama Capital and ru-Net. While Bahl didn’t disclose the investment split between these two parties, he noted that eBay is now the lead investor in the company.
With the current investment, Snapdeal has raised around $102 million in funding, including a $40 million round from Bessemer Venture Partners, Nexus Venture Partners and Indo-US Venture Partners in July 2011 and a $12 million round from Nexus Venture Partners and Indo-US Venture Partners in Jan 2011. A StartupCentral report suggests that the company had also raised an undisclosed amount in its Series A round from IndoUS Venture Partners. We have contacted Bahl for a clarification and will update the article once we get a response.
The company claims to currently have 20 million registered users, with 14-15 million monthly active users and hopes to clock $400 million revenue in gross merchandise value this year, of which Snapdeal will get a 5-15% cut.
Last week, Snapdeal had acquired the handicraft marketplace Shopo.in for an undisclosed amount, following which Shopo’s products were integrated to the Snapdeal’s website. It had also acquired sports and fitness focused e-retail venture Esportsbuy.com in April 2012 and had shut it down two months after the acquisition.