Alibaba Group Holding Ltd Scraps Plans To Invest In Snapdeal

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Alibaba Group Holding Ltd Scraps Plans To Invest In Snapdeal
By Charliepug (Own work) [CC BY-SA 4.0], via Wikimedia Commons

Chinese online retailer Alibaba has scrapped plans to invest in Snapdeal due to the exorbitant valuation sought by the Indian online marketplace. Snapdeal was seeking to raise $1 billion in the latest funding round to fuel growth, and the Chinese giant was looking to invest $500-$700 million. But the two firms could not agree on valuations.

Alibaba leaning away from investing in Snapdeal

Sources familiar with the matter told The Economic Times that the Hangzhou-based company was valuing Snapdeal between $4 billion and $5 billion. But the Indian firm had sought a valuation of $6-$7 billion. The investment in the New Delhi-based company would have given Alibaba a stronger footing in the rapidly growing Indian e-commerce market.

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