News East West
NEW YORK: Indian e-commerce site Snapdeal.com is likely to soon join the $1 billion club.
New Delhi-based Snapdeal, which caters to business sellers, has over 20 million users. It is likely to reach $500 million in sales in the current year ending in March.
According to Wall Street Journal, the Indian e-commerce site is getting ready to raise $100 million that could give it a valuation of $750 million to $1 billion. The funding could come from Credit Suisse, the report quotes a source familiar with the portal.
Venture capital firms such as Bessemer Venture Partners, Intel Capital and Nexus Venture Partners have already invested in Sanpdeal. But Intel Capital is also interested in the current round of fundraising.
Snapdeal has grown rapidly because Indian laws don’t allow Amazon.com and Wal-Mart to sell directly to consumers in India.
As of now, Snapdeal shares listings with eBay across the two sites. In fact, eBay was part of a $50 million investment in Snapdeal in June when the company was valued at about $250 million, according to the WSJ report.
The Indian e-commerce market is currently pegged at $3billion. But it is likely to balloon to $22 billion within the next five years, the report quotes estimates by investment bank CLSA.