Chinese e-commerce giant Alibaba and iPhone manufacturer Foxconn are apparently in talks to jointly invest $500 million in India’s Snapdeal, in a deal that could value the company at $5 billion.
Just last year, online marketplace Snapdeal raised nearly $1 billion led by Japan’s SoftBank and eBay, which valued the company at $2 billion.
According to WSJ, Alibaba and Foxconn have decided to take a combined stake of 10% in Snapdeal though it still needs to be approved by regulators in India.
Talks between Alibaba and Snapdeal earlier this year stalled because the Chinese company wasn’t interested in such a small stake investment in the company.
Snapdeal won’t be the first Indian e-commerce player Alibaba has invested in. The company bought a 25% stake in Paytm for around $650 million this February and has plans to make it portal through which its Chinese sellers can sell products to India.
Foxconn, on the other hand, will gain a foothold in India which is among the fastest growing smartphone markets in the world. The company’s plans of investing in e-commerce and manufacturing in India were recently revealed.