India's Yebhi.com is in the final stage of negotiations with investors to raise USD30 million to USD50 million in equity financing, a report by the Economic Times said.
The Economic Times said that Yebhi.com is the latest online retailer in recent months to raise a fresh round of capital from venture firms.
Investor appetite seems to have returned in India's e-commerce sector after going through a lean phase over the last two years, the report said.
According to the Indian news daily, if the transaction pushes through, Yebhi.com will follow leading e-commerce company Flipkart. Flipkart raised USD360 million in two funding rounds earlier this year.
Meanwhile, rival e-tailer Snapdeal is also reportedly in talks to raise USD150 million to USD200 million including Japan's Softbank and current backer eBay, the report said.
The frenetic rise in transactions comes at a time when risk capital is focusing more on companies that have shown a clear path to profitability, as well as provided an exit route to investors, Economic Times said.
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