After raising $627 million from Japanese telecom and internet corporation, Softbank in late 2014, Snapdeal is now looking forward to raise funding from Chinese e-commerce company, Alibaba. In February this year, the company had also announced that it was looking to raise $400 million seeking a valuation of $5 billion.
A source familiar with the deal said on Wednesday that negotiations were going on. The source however, hasn’t confirmed any deal yet.
Update: Snapdeal told iamWire that these are speculations and they would not be commenting on them at the moment.
Co-founded by Kunal Bahl and Rohit Bansal in 2010, Snapdeal had secured USD 100 million in May 2014. Also, last year in August, the company had received a fund from Ratan Tata, the amount of which had not been disclosed. Till date, the total capital raised by the company is close to USD 1.1 billion.
It is directly competing with Flipkart, valued at $11 billion, which has 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 recently invested 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, Snapdeal is in talks to acquire Komli Media in a deal that values the ad technology company at about $300 million. A person familiar with the matter told ET that the deal will give Snapdeal engineering capabilities in Bengaluru as it battles Flipkart, as well as help it notch up advertising revenues by selling space on the ecommerce site.
Founded in 2006, Komli has already raised $97 million in five rounds from investors including Nexus Venture Partners and Peepul Capital. It employs nearly 300 people across India.
The company works as a digital advertising network — buying and selling advertising inventory online in Asia Pacific.
A few days back, Flipkart had acquired Bengaluru-based mobile advertising platform Adiquity for an amount which has not been disclosed. The acquisition was made to give a push to its advertising revenues.