PUBLISHED BY: SURENDER KUMAR
OCTOBER 28, 2014
Snapdeal has raised $ 627 million (Rs.3750 Cr) in the latest round of funding from Softbank. Through this strategic investment, SoftBank aims to further strengthen its presence in India and leverage synergies with its network of Internet companies around the globe.
This is the largest investment made by a single investor in an Indian e-commerce company. Other existing investors have also invested at an undisclosed amount. Snapdeal is thrilled to have SoftBank as a strategic partner and with its support, it hopes to further strengthen its promise to consumers. Snapdeal.com has raised $1 billion in all this year alone. With this round of funding, Softbank is now the leading investor in Snapdeal.com. Snapdeal was founded in February 2010 by Kunal Bahl and Rohit Bansal. The company saw phenomenal growth in 2013-14, by growing 600 % from 2013 to 2014.
Earlier this year, the company raised $133.77 million in an eBay-led funding round and $105 million from Temasek, Myriad, Tybourne, Blackrock Inc. and Premji Invest. Ratan Tata also has made a personal investment in the company. To fuel its growth, Snapdeal will be ramping up its technology and supply chain management. The company will open innovation centres across the country. The company plans to double its technology team to 1,000 by 2014-end. To strengthen its Supply Chain efforts, the company also plans to expand its fulfillment centres to 30 cities. It currently runs 40 fulfillment centres in 15 cities. With a vision to enable SMBs in online business, Snapdeal.com aims to expand its merchant base to 10 lakhs in the next 3 years. The new fulfillment centres will not only enrich the buyer experience but will also enable SMBs without the necessary resources to handle deliveries. Further, Snapdeal.com will make 3-4 strategic acquisitions specifically in mobile technology. With mobile commerce gaining momentum, Snapdeal.com will also set up an incubation centre to hone start-up businesses in this space.