While all the buzz today is around Flipkart’s acquisition of Myntra, another Indian e-commerce site Snapdeal too has reached a new milestone. The eBay backed site has raised $100 million in the second round of funding that includes five investment firms.
“We see this financing round as another endorsement of Snapdeal’s differentiated strategy and progress as India’s largest online marketplace,” Snapdeal’s CEO and co-founder Kunal Bahl said. “We are pleased to welcome several marquee global investors as our partners and believe their association will contribute to Snapdeal’s long-term success.”
These investors include Azim Premji’s family office called Premji Invest, Temasek, BlackRock, and Hong Kong-based companies Myriad and Tybourne. Earlier this year in February, Snapdeal raised $133.77 million in funding from investors led by eBay. Other investors included Kalaari Capital, Nexus Venture Partners, Bessemer Venture Partners, Intel Capital and Saama Capital.
According to a joint report by KPMG and Internet and Mobile Association of India (IMAI), India’s booming e-commerce industry is believed to be worth somewhere around $13 billion in 2013, and it is only going rise this year. Some market experts claim that the industry is going to touch $70 billion by 2020.
In this lucrative industry, Snapdeal competes against the likes of Flipkart and Amazon India. Flipkart and Amazon India have been tempting buyers by introducing services like same-day delivery, Flipkart First, and customizable pickup points among others. Amazon is also lobbying in the US to push Indian government to change FDI rules in retail.
The press release follows:
Snapdeal.com raises US$ 100 million
New Delhi, May 21, 2014: Snapdeal announced today that it has completed a new round of equity financing of US$ 100 million. The investors in this financing include funds managed by Temasek, BlackRock Inc., Myriad, Premji Invest and Tybourne.
“We see this financing round as another endorsement of Snapdeal’s differentiated strategy and progress as India’s largest online marketplace. We are pleased to welcome several marquee global investors as our partners and believe their association will contribute to Snapdeal’s long-term success. Our mobile and internet commerce marketplace is now connecting millions of buyers to a very large base of sellers that offer products and services of national and international brands. We will continue to focus on creating life changing experiences for the buyers as well as sellers in the Snapdeal ecosystem.” said Kunal Bahl, Snapdeal’s Co-founder and CEO.
This financing follows Snapdeal’s previous round of equity financing of US$ 133.77 million that was completed in February 2014 with participation from Snapdeal’s existing investors including eBay Inc., Kalaari Capital, Nexus Venture Partners, Bessemer Venture Partners, Intel Capital and Saama Capital.
Credit Suisse acted as Snapdeal’s exclusive financial advisor and Indus Law acted as Snapdeal’s legal advisor for the financing.