) recently made an investment of $133 million in Delhi-based
Snapdeal.com. This is the second time that eBay has invested in
the company. However, both the parties declined to comment on
eBay's current stake in Snapdeal.
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Apart from eBay, Snapdeal's other investors include Kalaari
Capital, Nexus Venture Partners, Bessemer Venture Partners,
) Intel Capital and Saama Capital.
As per the agreement, not only will eBay increase its equity
stake in Snapdeal, but also access its customer base of 20
million and its engineering software and marketing networks.
Also, the two parties can share each other's technology and
eBay's Indian subsidiary, eBay India, was launched more than
eight years ago and offers over 3 million products to its 5
million registered shoppers. eBay is optimistic that the latest
move would enhance the businesses of both Snapdeal and eBay
eBay's investment in Snapdeal can be attributed to its
complementary business model, strong brand name and management.
Snapdeal.com is India's first online website to implement an
e-commerce marketplace model. It was started in 2010 with the
same concept as eBay's, the only difference being that it works
only for businesses and not individual sellers.
eBay has long been eyeing the Indian marketplace. Digital
commerce growth has accelerated due to the advent of advanced
technology, inclusion of better modes of payments, delivery as
well as increasing smartphone infiltration. In addition, a
growing number of aspiring buyers and increasing wealth act as a
growth engine for the online marketplace. Even though it is still
at a nascent stage, there has been significant growth in the past
In Jul 2013, eBay made its first investment of $50 million in
Snapdeal to take on its global rival
), which has been expanding rapidly in Indian cities like
Bangalore, Chennai and others.
eBay has been focusing on international growth and therefore
increasing its foothold in Brazil, Russia, India and China (BRIC
Recently, it entered into a partnership with the U.S. Department
of Commerce (DOC) for the expansion of trade and investment in
the world's largest economy.
Currently, eBay holds a Zacks Rank #4 (Sell).
), carrying a Zacks Rank #1 (Strong Buy), is a better-ranked
stock in the same sector.