Internet and telecommunications conglomerate SoftBank has entered discussions to lead a $100m funding round for India-based e-commerce company Snapdeal, MoneyControl reported yesterday.
A group of unidentified US and China-based investors have also expressed interest in participating in the round, sources familiar with the matter told the publication. SoftBank is expected to invest between $50m and $60m.
Founded in 2010, Snapdeal operates an online store that sells a wide range of products, such as clothing, jewellery, furniture, appliances, televisions and smartphones.
The company became cashflow positive in June 2018 after narrowly avoiding collapse following a failed attempt by SoftBank in 2017 to merge the business with competitor and fellow SoftBank portfolio company Flipkart. It subsequently sold off multiple subsidiaries including financial services marketplace Freecharge.
Snapdeal’s troubles led to FIH Mobile, a subsidiary of contract manufacturer Foxconn, writing down nearly all of the $200m it had invested in the company in May 2018, three months after another backer, eBay, wrote off a $61m investment.
Snapdeal most recently received an undisclosed amount of funding from private investor Anand Piramal in July 2019, according to Inc42. The company had previously raised about $1.7bn in equity financing altogether.
SoftBank and Foxconn participated in a $500m round for Snapdeal in 2015 that included e-commerce firm Alibaba, after SoftBank paid $627m for a 30% stake in the company in October 2014.
Mobile software producer Myriad had joined Tybourne, PremjiInvest, Temasek and BlackRock to provide $100m for Snapdeal five months earlier.
Online auction platform eBay had led a $134m round for Snapdeal earlier in 2014, investing together with Intel Capital, the corporate venturing subsidiary of chipmaker Intel, as well as Bessemer Venture Partners (BVP), Nexus Venture Partner, Kalaari Capital and Saama Capital.
Smapdeal had secured $50m in a 2013 round also led by eBay that featured BVP, Nexus Venture Partners and IndoUS Venture Partners. The company’s earlier investors also include internet company Ru-net.
