It has only been a few days since Flipkart raised $1 billion in funding and Amazon announced to invest $2 billion in its Indian business, and now Tata Sons chairman Ratan Tata is reportedly showing interest in making personal investment in Snapdeal, an Indian e-commerce player. According to the Times of India, Ratan Tata is likely to buy out an early investor in Snapdeal through a secondary sale. Though it does not give information about the size of the deal or when the deal would be completed, it is likely that Tata would hold a minor stake in the company. Also Read - Amazon, Flipkart and others to add labels to Chinese goods sold online in IndiaAlso Read - Oppo Reno 2Z now available on pre-order: Price in India, specifications and all you need to know
If happens, this would help Snapdeal take a step ahead in the already burgeoning e-commerce segment in India, which is currently ruled by Flipkart and Amazon. Also, with this investment, Snapdeal might get a push to compete against the likes of Amazon, which has affected the company s domestic market significantly. Reportedly, Tata has already visited Snapdeal s office in Delhi last month and has had interacted with its employees.
Recently Snapdeal was also in news for eyeing to raise $300 million in PE funding. The company has already been funded twice this year, with a total of $233 million funds raised in both the fund raisings. It is now valued at over $1 billion. It existing investors include eBay Inc, Temasek, BlackRock, PremjiInvest, Intel, Nexus Venture Partners, NEA-IndoUS Venture Partners and Bessemer Venture Partners.
The e-commerce industry is India is growing at a fast pace. According to a joint report by KPMG and Internet and Mobile Association of India (IMAI), India s e-commerce industry is believed to be worth around $13 billion in 2013, and it is only going to grow further this year. Also, market experts have claimed that the industry is going to touch $70 billion by 2020.