SoftBank Internet and Media, Inc. (“SIMI”) and #snapdeal today announced definitive agreements under which the SoftBank Group will become the largest investor in Snapdeal, through a total investment of $627 million.
Snapdeal has posted a loss of INR 264.6 crore against revenues of INR 168.1 crore in 2013-2014.
Snapdeal, founded in 2010, has more than 25 million registered users and more than 50,000 business sellers. Through this strategic investment and partnership with Snapdeal, the SoftBank Group aims to further strengthen its presence in India and leverage synergies with its network of Internet companies around the world.
“Since SoftBank’s foundation, our mission has been to contribute to people’s lives through the Information Revolution. We believe India is at a turning point in its development and have confidence that India will grow strongly over the next decade. As part of this belief, we intend to deploy significant capital in India over the next few years to support development of the market.” Masayoshi Son, Chairman and CEO of SoftBank Corp
Nikesh Arora will be joining the board of Snapdeal as part of this strategic investment by the SoftBank Group. Snapdeal has raised $134mn funding from eBay in Feb 2014 and $105 million (May 2014) from institutional investors – Temasek, Myriad, Tybourne, Blackrock Inc. and Premji Invest. Tata, Chairman Emeritus, Tata Sons; taking the total amount of funding raised to $1.08 billion dollar.
What’s NextBigWhat for Snapdeal? Founder, Kunal Bahl has been extremely vocal about the over-valuation of competition like Flipkart. Watch this conversation.