Snapdeal raises $100 mn; eyes $1 bn revenue this year

Homegrown e-commerce giant Snapdeal has raised $100 million in a new round of funding from Temasek, BlackRock Inc, Myriad, Premji Invest and Tybourne.

In February, Delhi-based firm had raised about $133.7 million (about Rs 830 crore) from its existing investor, eBay and others.

"We manage our funds well and are well-capitalised. This round of funding was more to bring on new partners who can play an important role in the future of the company than just to raise funds," Snapdeal co-founder and CEO Kunal Bahl said, declining to comment on the total funds raised so far.

Snapdeal's existing investors include Kalaari Capital, Nexus Venture Partners, Bessemer Venture Partners, Intel Capital and Saama Capital.

"This round of funding is an endorsement of our differentiated strategy and progress as India's largest online marketplace. I am confident that these new partners will contribute to Snapdeal's long-term success," he said.

Credit Suisse acted as Snapdeal's exclusive financial advisor and Indus Law acted as legal advisor for financing.

On business growth, Bahl said he is confident that the company would hit the $1 billion revenue mark this year.

"We have seen manifold growth and a lot of it is being driven by mobile. More than 50 per cent of our orders are now coming through mobile phones. This year, we should hit the $1 billion milestone," he said.

The company, which is inspired by Chinese e-Commerce giant Alibaba's marketplace model, today connects over 30,000 sellers with buyers across the country.

"Some of our investors are also investors in Alibaba. We want to continue focusing on creating life changing experiences for the buyers as well as sellers through the Snapdeal ecosystem," Bahl said.

On acquiring firms with the cash on books, he said Snapdeal would look at inorganic growth with tech firms but stay away from e-commerce firms.

"It doesn't make sense for us to acquire another e-Commerce firm since the industry is still in its nascent stages. It would destroy value for both companies. What we could look at is tech companies that can help enhance buyer and seller experience," he said without disclosing further details.