Online marketplace, SnapDeal is in the process of raising a funding between $125 million to $175 million expected to be led by eBay Inc, which is an existing investor, reported TechCircle.in.

If finalized, this funding will be the second largest after Flipkart raised funds worth a total of $360 million last year.

Earlier reports were doing round which suggested that SnapDeal was looking to raise $150 to $200 million from eBay and Japanese telecommunications and Internet corporation, SoftBank and other private equity investors.

In July 2011, SnapDeal had raised $40 million in Series B funding from Bessemer Venture Partners, along with contributions from existing investors Nexus Venture Partners and IndoUS Venture Partners. In April 2013 SnapDeal raised $50 million Series C investment led by ecommerce giant eBay. The other investors who participated in the investment included Nexus Venture Partners, Bessemer Venture Partners and IndoUS Venture Partners.

Then in June 2013, SnapDeal closed an investment of around $50 million (Rs 280 crore) from venture capital firms like Intel Capital, Saama Capital, Russian venture fund, ru-Net and angel investors. This was followed by a funding of $75 million from Softbank in August 2013.

The funding wars in India only seem to be heating up. Another major player of the India e-commerce market, Myntra recently raised $50 Million (about Rs. 300 crore) in a financing round led by Premji Invest along with new and existing investors.

Also Myntra is planning to launch its marketplace in April this year, biting into the market share of players like SnapDeal, Flipkart and Amazon.in.