Online marketplace Snapdeal founded by Wharton Business School Alumnus, Kunal Bahl is in talks with Alibaba for raising a whooping $1 Bn funding round. According to reports, Snapdeal’s top executives, including co-founder Kunal Bahl, was in China last week for negotiations with Alibaba.
Snapdeal, is aiming for a valuation of at least $5 Bn with this round, the 5 year old company is currently valued somewhere between $2-2.5 Bn. “Snapdeal has a term sheet from Alibaba, but is not getting the valuation (it) wants,“ said one of the sources. “On the other hand, private equity firms are making higher offers, so i can likely be a joint investment.”
In 2014, Alibaba held talks with Snapdeal for a possible investment when Jack Ma visited New Delhi. Alibaba had made first investment in India in February, when it acquired 25% stake in Paytm.
Snapdeal had raised about $1 Bn in funding in multiple rounds, it’s investors eBay, Softbank, BlackRock, the Ratan Tata, PremjiInvest, Myriad Asset Management, Tybourne Capital among others. With Softbank being the common investor in both Snapdeal and Alibaba, thus this will also have an influence on the ongoing deal.
Let’s have a look at Snapdeal funding timeline
|January – 2011||$12 Mn||Nexus Venture Partners and Indo-US Venture Partners.|
|July – 2011||$40 Mn||Bessemer Venture Partners, Nexus Venture Partners and Indo-US Venture Partners.|
|April – 2013||$50 Mn||eBay, Bessemer Venture Partners, Nexus Venture and IndoUS Venture Partners|
|Feb – 2014||$133 Mn||eBay, Kalaari Capital, Nexus Venture Partners, Bessemer Venture Partners, Intel Capital and Saama Capital|
|May – 2014||$100 Mn||Temasek, BlackRock Inc, Myriad, Premji Invest and Tybourne.|
|August – 2014||Undisclosed||Ratan Tata|
|October – 2014||$627 Mn||SoftBank|
This news comes in at a time when, Flipkart is also rumoured to raise over $1.7 Bn at a $15 Bn valuation soon. Flipkart had raised about $2.45 Bn in total so far, which is more than double of what Snapdeal has raised.