Online e-tailer Snapdeal had added up a group of new investors which include Intel Capital, Russian venture fund ru-Net and Saama Capital reports Economic Times.
The company which had closed $50 million funding in April this year by eBay & Japan’s Recruit Co has raised another round to make it to $90 mn with the second round led by Intel Capital, ru-Net and Saama Capital and renowned angel investors including founders of US-based gourmet supermarket store Freshmarket.
Earlier this year Snapdeal was looking for $100 million in fresh round of funding.
eBay is now the lead investor in the company, whereas shares of Kunal Bahl along with co-founder Rohit Bansal has been much diluted, for which Kunal Bahl claims, “I would rather own a very small part of a billion-dollar company than 100% of something that is worth nothing,” to ET.
This has been one of the biggest investment that has come up in any ecommerce company in India, which coincides with Amazon’s launch of online marketplace in India.
Snapdeal had previously raised $12 million from Nexus Venture Partners and Kalaari Capital (formerly Indo US Venture Partners) in January 2011 and later it raised $40 million from Bessemer Venture Partners, along-with existing investors Nexus Venture Partners and IndoUS Venture Partners in July 2011.
With this investment, Snapdeal’s total investors include eBay, Japan’s Recruit Co, Intel Capital, ru-Net and Saama Capital, Bessemer Venture Partners, Nexus Venture and Kalaari Capital.
Snapdeal, valued more than INR 1,000 crore, expects to cross INR 2,000 Crores in 2013-14 fiscal and has maintained a growth rate of about 400 per cent year-on-year in the last two years. The latest round of funding is to grow technology backbone for its business.
Now Indian e-commerce market which is said to be the last frontier of e-commerce battle worldwide has arrived at an interesting stage with Amazon Vs Snapdeal (Ebay, Intel, Kalaari, Ru-Net, Recruit Co, Bessemer) vs Jabong (Rocket Internet) vs Flipkart (Tiger Global, Nasper, Accel & ICONIQ Capital) vs Shopclues (Helion, Nexus and power angels) competing for the growth.
Ru-Net has previously invested in Bestylish (going with tough times) and Freecultur, properties owned by Smile Group, and Intel Capital has recently invested in a $14 round in Healthkart.
The recent launch of Amazon in India has made things more interesting and other players backed with global experts will surely provide a good struggle for Amazon to grow its grounds in India. Also the entry and regain of faith of multiple global investors in Indian ecommerce highlights the calculated opportunity the Indian market poses in times to come.
Also the global number one player Amazon will now also look for keen acquisitions to scale fast in the market with choices of Flipkart, Jabong, Shopclues, Pepperfry as options among few others.