Indian e-commerce site Snapdeal.com reaches $100million in a round that values the company at $1 billion, based on the people involved in the deal.
The company is preparing for the upcoming fundraising round in New Delhi on Wednesday. Huge companies will be participating for the said events such as Singapore state owned investment company, Temasek Holdings, asset management firm Black Rock and others. Snapdeal got an advised from Credit Suisse for the round.
Snapdeal has almost the same market place with eBay that targets Indian consumers. The company has been growing rapidly and now has 25 million users, up from about 15 million from previous years. The company has been experimenting with same-day delivery among other initiatives. Spokesman said that it already registered almost $500 million in revenue for its fiscal year ended in March.
Kunal Bahl, Snapdeal SEO said that “We need to keep investing in tech and marketing. There is a tremendous opportunity for e-commerce in India; it is a very small portion of retail today and will only expand.” He refused to give further comment regarding the company’s evaluation.
Bahl’s e-commerce estimation today in India shows less than 1% of the $600 billion retail pie.
Their latest fundraising is second this year. Last February, it got $134 million from eBay, Bessemer Venture Partners, Intel Capital and others. EBay and Snapdeal decided to share listings across their sites which benefit the two companies in expanding their pool of possible buyers. To sum up everything, they raised almost $350 million.
According to Bahl, the money they raised will be used in developing Snapdeal’s 250-person engineering team and to strengthen its listing from small businesses. They are also planning to seek an IPO in the US but they haven’t yet hired banks or advisers to do so.
After the valuation of Snapdeal, they are expecting more opportunities to come for the company in the coming years.