Snapdeal LogoSnapdeal has raised $133.7 million in a round led by eBay, which has in the process raised its stakes in the Indian e-commerce company. We had heard earlier that the company was looking to raise $150-200 million in a round headed by eBay. Existing investors Kalaari Capital, Nexus Venture Partners, Bessemer Venture Partners, Intel Capital and Saama Capital also participated in this round.

President of eBay Marketplaces Devin Wenig, had told Re/code in an interview earlier this week that the investment could lead to an outright buyout down the line, as eBay has done in other global markets.

Both eBay and Snapdeal have been working closely over the past few months and it started the “first stage of partnership” in December last year when the sites started co-promoting each other’s products. “The first stage of the partnership is now live with benefits for both buyers & sellers. eBay India customers will now see even more variety with select Snapdeal listings showing up on eBay India in some Search Pages. In addition, eBay India sellers can tap even more demand as some of their listings will be showcased in Search pages at Snapdeal,” an eBay India spokesperson had said.

eBay Senior Vice President and APAC Managing Director Jay Lee said that it continues to invest in Snapdeal due to its “complementary business model, good management team and strong brand.” Snapdeal recently added online education vertical to make itself stand out in an otherwise crowded market. It is not clear if the company plans to offer more services in its marketplace in the near future.

Overall, Snapdeal has raised over $200 million investment until now, which includes a $50 million investment round from Ebay, Intel Capital, Russian venture fund ru-Net, Saama Capital, Recruit Co, existing investors like Nexus Venture Partners, Bessemer Venture Partners and IndoUS Venture Partners in June 2013; 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.

Snapdeal’s competitor Flipkart has raised a total $541 million from five rounds. It raised $160 million investment from Dragoneer Investment Group, Morgan Stanley Investment Management, Sofina and Vulcan Capital and existing investor Tiger Global in October 2013; $200 million from Naspers, Accel Partners, Tiger Global, and ICONIQ Capital in July and $150 million from Naspers and Tiger Global in 2012.

Amazon meanwhile, has been slowly adding verticals in India. It has also been lobbying US government to push FDI in e-commerce in India.

Indian e-commerce is now a battle between three key marketplaces: Amazon India, Naspers backed Flipkart and eBay backed Snapdeal. These are all marketplaces, though. Homeshop18, which claims to be the only e-commerce business with FDI approval, must be worried.