Japanese telecom giant Softbank on 27 October 2014 announced to invest 627 million US dollar in Snapdeal.
With the investment, the Snapdeal will become the largest shareholder in the online marketplace major. Through this strategic investment and partnership with Snapdeal, the SoftBank Group aims to further strengthen its presence in India and leverage synergies with its network of Internet companies around the world.
This is the largest investment made by a single investor in an e-commerce company in India. Other existing investors have also participated in this round of investment but the company declined to disclose the amount.
Snapdeal has risen close to 1 billion US Dollar during the year 2014. Founded in 2010, Snapdeal has more than 25 million registered users and more than 50000 business sellers.
The investment was a part of the SoftBank commitment to investment 10 billion US dollar (over 60000 crore rupees) in India’s IT and communications space. This was one of the biggest investment commitments from a Japanese firm.
Snapdeal will use the investments in expanding its chain of fulfillment centres and make acquisitions in the coming few months specifically in the area of mobile technology. With mobile commerce fast gaining pace in the country, the city-based firm also plans to set up an incubation centre to hone and harness start-up businesses in the mobile technology space within next 6 months.
When: 27 October 2014