India-based e-commerce company Snapdeal confirmed a $500m funding round co-led by e-commerce group Alibaba, contract manufacturer Foxconn and telecommunications and internet conglomerate Softbank today.
The round also included mobile software provider Myriad, Singaporean state-backed fund Temasek, investment manager BlackRock and investment firm PremjiInvest. It was originally reported two weeks ago.
Snapdeal operates an e-commerce marketplace that lists around 15 million products, supplied by a total of about 150,000 sellers.
Kunal Bahl, CEO and co-founder of Snapdeal, said: “We want to create life changing experiences for millions of small businesses and consumers in India.
“With global leaders like Alibaba, Foxconn, and SoftBank, in addition to our other existing partners supporting us, our efforts towards building India’s most impactful digital commerce ecosystem will be propelled further.”
US-based e-commerce company eBay concurrently revealed that it has divested part of its stake in Snapdeal to undisclosed investors.
The company led a $75m series D round for Snapdeal in 2013 that also included Intel Capital, the investment arm of semiconductor maker Intel, as well as Ru-net and Saama Capital. It was also an investor in the $134m round Snapdeal closed in February 2014.
Scott Schenkel, eBay’s chief financial officer, explained: “Over the past two years, the valuation of Snapdeal has significantly increased, and because eBay was an early investor, this sale will enable us to earn a strong return on our invested capital and strategically redeploy it into other areas of our business.
“India is an important market for eBay, and part of our fast-growing [Asia Pacific] region. While we will retain a significant portion of our original investment in Snapdeal, we also have a strong, healthy business with eBay.in, a leading online marketplace and shopping destination in India.”
Snapdeal has now raised more than $1.5bn since it was founded. Its past investors include Tybourne, Kalaari Capital, Nexus Venture Partners and Bessemer Venture Partners.