eBay Leads $50 Million Series C Funding In India-Based Snapdeal
eBay, the online e-commerce auction giant, has led a $50 million Series C investment in Snapdeal. Based in India, Snapdeal is an online e-commerce website that has 20 million users. Existing investors that have participated in this round include Nexus Venture Partners, Bessemer Venture Partners and IndoUS Venture Partners. This deal was first reported by NextBigWhat. eBay will become a minority shareholder in the company as Snapdeal has raised a total of about $102 million since 2010.
It is believed that Snapdeal was not looking to raise such a large round for their Series C, but investors were enthusiastic about the deal. Snapdeal’s sales have been growing year-over-year at a rate of 400% based on gross merchandise value. Reportedly, Amazon.com was interested in putting money into Snapdeal. However Snapdeal went with eBay since they pioneered the marketplace and is heavily focused on their international strategy. eBay India currently has about 5 million users, but they enable transactions at about 1 per minute.
Snapdeal started off as a daily deals website in 2010, but then they moved into a marketplace model last year. The company’s platform allows merchants to sell goods online. Snapdeal is expected to generate around $400 million in 2013 sales. However they are not planning on expanding outside of India anytime soon.
In a recent report, eBay revealed that they believe 25% of their total active users and 12% of global sales will be coming from the Brazil, Russia, India, and China (BRIC) region by 2015. For example, eBay’s Russian users bought $400 million in goods from eBay in 2012, which is 54% higher than 2011.
Snapdeal ships to over 4,000 towns and cities in India. The company has over 250,000 listings at any given time, featured by over 3,000 brands and over 50,000 merchants. Snapdeal sells over 25,000 items per day. The company has over 1,500 employees with an average age of 26. The company is led by CEO Kunal Bahl.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry