In an effort to expand its brand in India, eBay is planning to acquire a stake in online marketplace Snapdeal, according to local reports.
DealCurry, a finance and technology research site, reports the deal will give eBay minority ownership of Snapdeal, which itself recently acquired an online sporting good retailer, esportsbuy.com. The Times of India, citing unnamed sources, reports eBay’s stake may initially be 5 percent, valuing Snapdeal at around $300 million.
Snapdeal began as as a daily deal site and evolved to an eBay-style marketplace. The site manages packaging and delivery service using a model similar to Fullfillment by Amazon, according to DealCurry.
Snapdeal was founded in 2010. The site, which calls itself India’s leading online marketplace, has 18 million registered users, transacts 25,000 units a day and employs more than 1,500 people. In 2011, Snapdeal raised $52 million in venture financing.
eBay first entered the Indian ecommerce market in 2004, when it acquired Bazee.com for $50 million. Today, its Indian portfolio includes eBay India and eBay India Motors, which produce revenue between $11 million and $16 billion a month, according to The Times of India.
