After raising $627 million from Japanese telecom and internet corporation Softbank in late 2014, now Snapdeal is looking to raise $400 million seeking a valuation of $5 billion and has initiated talks with several investors.
As per an ET report, a US-based Hedge Fund is among those interested, a source familiar with the deal said.
Co-founded by Kunal Bahl and Rohit Bansal in 2010, Snapdeal had secured USD 100 million in May 2014 and received an undisclosed amount from Ratan Tata in August last year. Till date, the total capital raised by the company is close to USD 1 billion.
It is directly competing with Flipkart, valued at $11 billion, which raised a total of $1.9 billion from investors last year, and with Amazon which invested $2 billion to grow Indian operations. Also, it will also have to compete with newly-capitalised rivals like Paytm, which is backed by Alibaba affiliate Ant Financial, and ShopClues, which raised $100 million led by Tiger Global Management in January.
Apart from this, as per a FirstPost report, Kunal Bahl said on Saturday that the company is close to announcing an acquisition, which will play the role of an enabler for the platform.
“Anything that will be an enabler for our ecosystem that will make our sellers more successful, which will make business more successful as well as the platform…it could be core tech, it could any service that our sellers use, logistics may or may not be an enabler, my lens is always on how do you make ecosystem more successful,” Kunal said.
Snapdeal is also targeting to increase its total number of sellers to one million from the current 100,000 in next three years. “We want to create one million successful online entrepreneurs in next three years. We’re at 100,000 and 30 percent of them are women. Many of them didn’t have any income,” Bahl said.