The lucrative ecommerce market has now become hot topic of discussion these days, be it either sales, funding or even shut downs. In a recent development, there are rumors surfacing in media that 76-year-old chairman emeritus of Tata Sons, Rata Tatan is looking to invest in ecommerce marketplace Snapdeal. If we go by market speculations, Snapdeal.com, has recently asked its financial advisor Credit Suisse to scout for $300 Mn from private equity investors.
There is no doubt that raising funds would be the immediate plan of action for Snapdeal due to the increasing competition and obviously because of its competitors raising funds for fueling expansion.
Recently Flipkart had raised $1Bn and Amazon has invested $2 Bn for its Indian expansion.
While there has been no confirmation from either of the two, but as per the sources close to the development Ratan Tata may buy out an early investor in Snapdeal through a secondary sale and is expected to be a minority investor in his personal capacity in Snapdeal.
A report in TOI states that Tata had visited the firm’s headquarters in Delhi about a month ago and addressed employees.
Snapdeal has already raised about $233 Mn two rounds of funding so far this year, taking total capital raised to about $350 Mn.