Snapdeal, an online marketplace located in New Dehli, India, has just secured $50 million in funding thanks to eBay as well as its current investors, Bessemer Venture Partners, Nexus Venture, and IndoUS Venture Partners. eBay was looking for companies in India to invest its resources into, and it ended up choosing Snapdeal. Out of the 40 companies eBay was looking into, it found it had the best synergy with Snapdeal.
With the $52 million the company had raised last year combined with this new addition of investments, Snapdeal has accumulated a total of $102 million in funding. Snapdeal was once a daily deals site, similar to Woot or 1SaleaDay, however, in April of 2012, the company rebranded itself into a product business and got rid of the daily deals aspect altogether.
eBay has been looking to enter India’s market for quite some time now. It believes that it can raise up to $10 billion outside of the United States, and India is one of the prime markets to generate money in. Snapdeal’s marketplace model appeals to eBay and the company believes that it can generate revenues of $10.5 billion to $11.5 billion from Snapdeals by 2015, accounting for 12% of its entire revenue.
Snapdeal has over 20 million users, and sells a variety of products including mobile devices, computers, fragrances, books, and clothing. eBay wants to expand its presence to emerging markets by a staggering amount, hopefully reaching markets before Amazon is able to get its hands on them. Snapdeal has a promising future, with analysts believing that the company will be able to generate $400 million revenue this year. eBay has potentially landed a goldmine.