Snapdeal is said to have raised $200 million or roughly Rs 1,300 crore from investors including Canada-based Ontario Teachers Pension Plan, and Singapore-based Brother Fortune Apparel. The funds were raised by Jasper Infotech, which owns and operates Snapdeal. This round of funding comes around seven months after the e-commerce site had raised $500 million from the likes of Alibaba, Foxconn and Softbank. Also Read - Amazon, Flipkart and others to add labels to Chinese goods sold online in IndiaAlso Read - Lockdown 2.0: Amazon, Flipkart, E-commerce services allowed to operate in non-hotspot areas
This is Snapdeal’s 11th round of funding, and with the infusion of $200 million, the e-commerce site’s valuation has crossed $6.5 billion, Business Standard reports. The company valuation is up from $5 billion when the company had last raised money in August. To put this into perspective, its chief rival Flipkart is valued around $15 billion. The money will be used to improve the e-commerce site’s technology platform, logistics, payments and back-end infrastructure. BGR India has reached out to Snapdeal to confirm the round of funding. Also Read - Oppo Reno 2Z now available on pre-order: Price in India, specifications and all you need to know
Since its inception in 2010, Snapdeal has major strides in the e-commerce space and in the last couple of years has made significant investments in technologies. The company has more than 275,000 sellers on board, selling more than 30 million products online.
This funding round comes a week after Amazon invested Rs 1,980 crore in its Indian operations. The e-commerce giant is looking at beefing up services like warehousing and improve logistics and marketing among others.
The funding rounds come at a time when the Indian government is considering allowing 100 percent foreign direct investment (FDI) in the marketplace format of e-commerce. This is a business model followed by the likes of Snapdeal and Flipkart, wherein they provide an online platform for buyers and sellers.