In order to strengthen its presence in India, Japanese telecom and internet corporation, Softbank has invested USD 627 million in Snapdeal. Softbank had also recently invested USD 210 million in Indian cab service aggregator, Olacabs. As part of the deal, Nikesh Arora, Vice Chairman of SoftBank Corp. and CEO of SIMI will join the board of Snapdeal.
Earlier, Snapdeal had secured USD 100 million in May 2014 and received an undisclosed amount from Ratan Tata in August this year. The latest round brings the total capital raised by the company close to USD 1 billion.
The raised funds is expected to be used to expand the company business in the country, both organically and through acquisitions. Snapdeal was founded in 2010 and currently claims to have more than 25 million registered users and around 50,000 business sellers with an assortment of 5 million+ products across 500+ diverse categories from various regional, national, and international brands and retailers.
Its platform delivers services to 5000+ cities and towns in India and has seen 600 percent growth from 2013-2014. As per YourStory report, Kunal Bahl, Co-founder and CEO of Snapdeal said, “Our entire team at Snapdeal is thrilled and honoured to have SoftBank as a strategic partner. With the support of Son-san and Nikesh, we are confident we will further strengthen our promise to consumers and create life changing experiences for 1 million small businesses in India.”
Also, Nikesh said that with today’s announcement SoftBank is contributing to the development of the infrastructure for the digital future of India, and it wants to support the leaders and entrepreneurs of the digital future.
Image Courtesy: GrowthInstitute