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Last Updated : Feb 28, 2014 04:32 PM IST | Source: CNBC-TV18

Snapdeal raises $134 mn in fourth fundraising round

This latest round of funding - which is also its largest - takes total funding into Snapdeal to USD 241 million or Rs 1,460 crore

Online marketplace Snapdeal has raised USD 134 million or Rs 830 crore in its fourth rounding of funding from investors. This is by far the highest amount it has raised in a single fundraising round.

US online giant eBay once again led the new round of funding, further raising its stake in Snapdeal, following an initial investment made last year. In June 2013, eBay and other investors had pumped in USD 50 million into the company.

Also Read: M-commerce gathers steam; it is 30% of e-commerce revenues


"eBay's partnership with Snapdeal will benefit Indian businesses of all sizes, consumers and local commerce," said Latif Nathani, managing director, eBay India.

Snapdeal Co-founder and CEO Kunal Bahl, said: "We see eBay's second round of investment in Snapdeal as an endorsement of our strategy and progress."

Current institutional investors Kalaari capital, Nexus Venture partners, Bessemer venture partners, Intel capital and Saama capital also participated in this round of funding. According to a recent Macquarie report, Snapdeal has so far received three rounds of funding amounting to USD 107 million or Rs 633 crore.

The report adds that Snapdeal is looking to double its gross merchandise value from current USD 500 million-1 billion by FY15.

It has been constantly increasing its product assortment and categories to meet this target. In 2013, the company’s revenues grew six times on a y-o-y basis by increasing product categories and assortments. A big lever for its future growth is mobile commerce. Currently, mobile contributes 30 percent of orders placed, up from 5 percent less than 12 months ago.

Snapdeal's mobile commerce site witnesses about 12 million average visits per month, with the majority of customers coming from the top six metros of Delhi, Mumbai, Chennai, Kolkata, Bangalore and Hyderabad. The top selling categories over m-commerce on Snapdeal are mobiles, men's apparel, women's apparel, pen drives and memory cards and men's footwear.

In an earlier interview to CNBC-TV18, Ankit Khanna,VP-product management, Snapdeal had said, "We are going to launch our windows app in 2 months. We are also personalising the mobile experience. We are doing a lot of things around curation, recommendation on our website and now we want to take it to next level and do it for mobile."

First Published on Feb 28, 2014 04:32 pm