Snapdeal, one of the ecommerce giants in India, announced that it has raised fresh funds worth $500 million, in the funding round led by the Alibaba Group, the Chinese e-commerce, existing Softbank group and Foxconn Technology Group.
According to the documents filed by Taiwanese contract manufacturer Foxconn unit, FIH mobile, after raising the fresh funds the Snapdeal is valued at $4.8 Billion.
Foxconn will buy a combination of the existing and new shares for a stake of 4.27% and shares worth $200 million ($150 million for 3.11% stake and $ 50 million for 1.16% stake from ebay Singapore services pvt. Ltd.)
Its other existing investors who participated in the round include Blackrock, Temasek, Premji and Myriad. According to Alibaba spokeswoman, the funding to Snapdeal will help enhance their exposure to India’s growing ecommerce industry. Having a strong presence in mobile ecommerce, Snapdeal is said to fit Alibaba’s strategy of investing in innovative companies. Ebay too has infused around Rs. 450 Crore in the Ebay India Pvt. Ltd.