India’s Snapdeal Gets $50 Million Funding from eBay and Recruit Co
India's online retailer Snapdeal has raised funding estimated to be between $30 million and $50 million from eBay and Recuit Co of Japan.
The investment is the first in India for Recruit Co, a $10 billion classifieds and human resources company.
Founded by Kunal Bahl and Rohit Bansal, Snapdeal had been battling high operating costs and regulatory concerns. However, interest in the company had been revived with existing investors Bessemer Venture, Nexus Venture and Indo-US Venture Partners also participating in the deal.
Lead investor eBay will own less than a tenth of Snapdeal with its investment while the two founders continue to hold a majority stake in the company.
For Recruit, one of the largest privately-held companies in Japan with over 22,000 employees, the deal provides it a toehold in the Indian market. Last year, the company acquired Indeed.com which has become one of the world's most visited site.