Taiwan-based, Foxconn Technology Group is looking to invest $600-700 million in online eCommerce company, Snapdeal. The news just came after media reports stated that the company is also in talks with Chinese eCommerce company, Alibaba for potential investment. In February this year, the firm had also announced that it was looking to raise $400 million seeking a valuation of $5 billion.
A source familiar with the deal told VCCircle that the talks are still at a preliminary stage and the company is yet to issue a term sheet. However, a Snapdeal spokesperson said, “It is a market speculation, and as a policy we do not comment on speculation.”
Foxconn is a contract electronics manufacturer, which assembles bulk of Apple’s iPhones and iPads and has factories in Asia, Europe, Mexico and Brazil. Its clients include European, American and Japanese electronics and IT companies like Amazon, Blackberry, Cisco, Acer, Dell, HP, Microsoft, Motorola, Nokia, Microsoft, Xiaomi and Nintendo, among others.
Besides planning an Indian eCommerce foray through Snapdeal, Foxconn is also planning to enter in Chinese eCommerce space. It has launched a trial site ‘flnet.com’, for an online marketplace to sell electronics.
Co-founded by Kunal Bahl and Rohit Bansal in 2010, Snapdeal had secured USD 100 million in May 2014. In October 2014, it had secured $627 million from Japanese telecom and internet corporation, Softbank. 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.