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[Updated] Snapdeal Snaps $627M Funding From Softbank

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[Updated on 28th Oct 2014]

The news of Snapdeal raising funding from Softbank has been confirmed. According to a Techcrunch report, Snapdeal’s CEO Kunal Bahl has confirmed that it has raised $627M funding from Softbank. This round of funding also has other investors who have not been named as yet. The total funding amount is unknown, but Snapdeal’s valuation may be higher than expected $2B and may be even closer to USD 3 Billion.

Here is the total Funding that Snapdeal has raised till date

Snapdeal Funding Till Date

Round Who Funded Date Amount
First Round Nexus Venture Partners, Indo-US Venture Partners January 2011 USD 12 Million
Second Round Bessemer Venture Partners, Nexus Venture Partners, Indo-US Venture Partners July 2011 USD 45 Million
Third Round Ebay, Intel Capital, Nexus Venture Partners & Others June 2013 USD 50 Million
Fourth Round Kalaari Capital, Nexus Venture Partners, Bessemer Venture Partners, Intel Capital and Saama Capital Feb 2014 USD 133.77 Million
Fifth Round Temasek Holdings, Blackrock, Myriad, Premji Invest, Tyborne May 2014 USD 100 Million
Sixth Round Softbank & Others [Yet undisclosed] October 2014 approx. USD 650 Million (may be higher)

 

Earlier [written on 17th Oct]

Snapdeal To Get $650M Funding From Softbank; Valuation Over $2B?

Japanese telecommunication, Internet and Finance company Softbank will invest $650 million in Snapdeal, probably taking it’s total valuation more than $2 billion. Once the transaction takes place, it would be the fastest billion dollar jump for Snapdeal as in the month of May, it was valued at $1 billion after receiving $100 million as venture capital.

As per initial reports coming in, Softbank will get 30-35% stake in Snapdeal after the deal materializes.

Snapdeal Logo

After Flipkart raised $1 billion in one single round, this would be India’s largest infusion of capital funds into any ecommerce portal; and would make Snapdeal country’s third largest ecommerce portal after Flipkart ($7 billion valuation) & Amazon. The previous highest milestone for Snapdeal in-terms of venture capital funding was $133 million, during fourth round of funding in February 2014.

The deal would materialize in the last week of October, when Softbank’s CEO and Founder Masayoshi Son visits India for inking this historic deal. Incidentally, Son with a net worth of $22 billion is Japan’s richest person as well.

Softbank is $92 billion Japanese corporation having interests in telecommunication, Internet, Finance, media, technology, marketing and other verticals. Among other major investments, it has stake in Yahoo Japan, was the only carrier to introduce Apple iPhone in Japan (initially), and has stake in Sprint Telecom, America’s third largest telecommunication company after it bought 70% stake for $20.1 billion in 2012.

Softbank has already invested in Indian startup InMobi, and has a joint venture with Bharti Group. Interesting to note, that Softbank is also the largest shareholder of Alibaba, having 32% stake.

Insiders have reported that Softbank has picked ex-Google board member Nikesh Arora and appointed him as Vice President in their organization. He may be appointed as non-Executive chairman of the new revamped Snapdeal board of members, and may also provide him with 5% personal stake in the ecommerce portal; thereby making him accountable for the operations.

Speculations are rife that some of the early stage investors in Snapdeal such as Kalaari Capital, Nexus Venture Partners and Bessemer Venture Partners may chose the exit route after this investment.

Some high profile investors such as Ratan Tata have already invested in Snapdeal previously. Skeptics are terming it has a major development for Indian eCommerce sector, as Snapdeal has gradually opened a third front in the market, after aggressive marketing from Flipkart and Amazon.

We will keep you updated as more details come in.

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  1. […] were reporting when SoftBank’s investment was still only rumored, the valuation is now closer to $2 billion, although a report in The Times of India puts it to over $3 billion — as it notes that […]

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