Alibaba Group Holding Ltd Leads $500 Million Funding In Snapdeal


Chinese e-commerce giant Alibaba had been negotiating to invest in the rapidly-growing online retailer Snapdeal for months. And now Re/code has learned from multiple sources that Alibaba, Foxconn, and Japan’s SoftBank have invested $500 million in the Indian e-commerce firm. The deal values Snapdeal at $5 billion. SoftBank had also invested in Snapdeal in a previous funding round.

Snapdeal’s valuation jumps almost three-fold

We reported in March that a consortium of investors led by Alibaba were in talks to invest up to $1 billion in the New Delhi-based company. But that deal fell apart over valuations. Alibaba was valuing Snapdeal between $4 billion and $5 billion, while the Indian company was seeking a valuation of $5 billion to $6 billion. It seems that the two sides have resolved the issues and agreed at a valuation of $5 billion.

Looking Into the Gaming Industry with VanEck’s JP Lee

Online, GamingValueWalk's Raul Panganiban interviews JP Lee, Product Managers at VanEck, and discusses the video gaming industry. Q4 2020 hedge fund letters, conferences and more The following is a computer generated transcript and may contain some errors. Interview With VanEck's JP Lee ValueWalk's ValueTalks ·

Snapdeal is backed by SoftBank, eBay, BlackRock, Kalaari Capital, Nexus Venture Partners, and billionaire Indian businessman Ratan Tata. Prior to the latest funding round led by Alibaba, Snapdeal had raised a little over $1 billion. In October 2014, it was valued at $1.87 billion when SoftBank poured $627 million in the company.

Alibaba now owns stake in two New Delhi-based e-commerce firms

It is Alibaba’s second major investment in the Indian e-commerce space. Earlier this year, the Hangzhou-based company picked 25% stake in Paytm for $500 million via its financial services arm Ant Financial. Alibaba agreed in June to hike its stake in Paytm to 40% by investing another $600 million. That funding round valued Paytm at $4 billion.

Snapdeal posted gross merchandise volume of $2 billion in 2014. It has set the target of $10 billion in GMV for the year 2015. Its biggest rivals are Flipkart, currently valued at $15 billion, and Amazon. Flipkart has raised billions of dollars in the past year to maintain its leading position in the Indian e-commerce space. Last month, Amazon announced to invest $5 billion in India to make it the company’s biggest market outside the U.S. Alibaba’s backing will also help Snapdeal in terms of technology and expertise.

Alibaba shares were down 0.28% to $78.15 in pre-market trading Monday.


No posts to display