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Snapdeal bags 100 million dollars funding from five investors

By FashionUnited

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Snapdeal has got 100 million dollars (over Rs 550 crores) funding from a group of five

investors including Azim Premji's PremjiInvest. Experts say that with the latest round of funding, the third for the Delhi-based company in the last year, values Snapdeal at 1 billion dollars (over Rs 5,800 crores).

The round led by PremjiInvest was joined by others like Temasek, BlackRock, Hong Kong-based asset management company Myriad and hedge fund Tybourne, also based in Hong Kong. In February, Snapdeal raised about Rs 830 crores in a round led by eBay. Its financial backers include: Kalaari Capital, Nexus Venture Partners, Bessemer Venture Partners, Intel Capital and Saama Capital. The company has so far raised about 340 million dollars (over Rs 1,990 crores).

This latest development happens at a time when Snapdeal, is looking to achieving an annual sales (GMV) target of Rs 6,100 crores (1 billion dollars) within the next two-to-three months. GMV is the worth of sales transactions on a website. E-commerce players calculate the annual GMV based on the monthly run rate.

Competing with e-tailing leader Flipkart, Snapdeal recently ventured into the services commerce by launching an education marketplace. The company’s diversification into offering services, is said to be with a target of achieving a billion-dollar (over Rs 6,000 crores) turnover in a few months from now. The Delhi-based company expects to report 20 percent of its turnover in the next couple of years from services commerce.

The platform founded by Wharton alumnus Kunal Bahl and IIT-Delhi graduate Rohit Bansal moved to become an online marketplace for products in 2012. While the platform has been witnessing growth across categories sold but according to the company, segments like electronics and apparel are doing extremely compared to other categories. Launched in February 2010, Snapdeal has seen rapid growth in the last three years and claims to have over 20 million members. It offers products across over 500 product categories through 20,000 sellers and delivers to more than 4,000 cities in the country.

Snapdeal