AAA Snapdeal enters talks with SoftBank over $500m round

Snapdeal enters talks with SoftBank over $500m round

Jasper Infotech, the India-based owner of e-commerce company Snapdeal, is in talks with Japan-based telecommunications company SoftBank concerning a funding round that could reach $500m, VCCircle reported yesterday.

Founded in 2010 as a Groupon-like daily deals provider, Snapdeal has since evolved into a wider ranging online marketplace, growing to a 25 million-strong member base and more than 50,000 sellers.

The company raised $100m in May from software developer Myriad, Tybourne, PremjiInvest, Black Rock and Temasek, bringing its total funding to more than $410m.

Existing investors include e-commerce company Ebay, Intel Capital, which acts as the corporate venturing arm of semiconductor maker Intel, internet company Ru-net, Saama Capital, Nexus Venture Partners, Kallari Capital and Bessemer Venture Partners.

Sources have told VCCircle that Snapdeal is in talks with “one or two Asian investors” to raise a huge round in anticipation of launching an initial public offering in the next two years.

One of the investors is SoftBank, reportedly already one of Snapdeal’s backers thanks to a $75m investment in August 2013.

News of the fundraising comes days after reports that Snapdeal was set to form an incubator that would work with mobile technology start-ups.

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