Commerce giant eBay has led a $133.77 million round of funding in Indian online marketplace Snapdeal.

eBay’s newest investment in Snapdeal raises its holding in the Indian e-commerce marketplace, after taking 10 per cent stake in mid-2013.

The company says it chose to increase its investment due to the company’s complementary business model, good management team and strong brand.

“Accelerating growth in India and other emerging markets continues to be a strategy for driving eBay’s global e-commerce leadership,” said eBay Senior VP and APAC MD Jay Lee.

“We see eBay’s second round of investment in Snapdeal as an endorsement of our strategy and progress. All our current institutional investors including Kalaari Capital, Nexus Venture Partners, Bessemer Venture Partners, Intel Capital and Saama Capital have participated in this round as well which is a strong endorsement of our team,” said Snapdeal co-founder and CEO Kunal Bahl.

New Delhi-based Snapdeal expects to post gross merchandise revenue of $1 billion in the next fiscal year.

eBay and Snapdeal will continue to work separately moving forward. The Indian marketplace is growing rapidly and both companies are well poised to capitalise to on the opportunity of a growing 200 million Internet user base and 140 million mobile Internet users.