Last year had seen an increase in the Ebay funding towards Snapdeal. Ebay had raised approximately $134 million worth of funds for eBay in 2014.
In a latest turn of events, eBay has decided to sell parts of its stake in order to focus on its India entity. EBay Inc, an early backer of the company, is selling part of its stake in a transaction which also involves fresh funding.
This however, will be a win-win situatuion for both the groups. This sale of stake will earn eBay almost the same amount that it had initially invested in Snapdeal, while Snapdeal will continue to have a part of the stake to its credit. Snapdeal also has managed to finalise funds worth $500 million through Alibaba and Foxconn.
While the earier investment by eBay in Snapdeal might have been an outcome of the M&A plan that they might have finalised on, the current valuation of Snapdeal has possibly caused eBay to sell its stake and rather focus on its India entity.