Update: SoftBank today has announced that it is investing of $627 Mn in Snapdeal and this will make SoftBank largest investor in Snapdeal.
Masayoshi Son, Chairman and CEO of SoftBank Corp. said,
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.
Nikesh Arora, Vice Chairman of SoftBank Corp. and CEO of SIMI who will be joining board of Snapdeal as part of this investment, said,
India has the third-largest Internet user base in the world, but a relatively small online market currently. This situation means India has, with better, faster and cheaper Internet access, a big growth potential. With today’s announcement SoftBank is contributing to the development of the infrastructure for the digital future of India. We want to support the leaders and entrepreneurs of the digital future; Kunal and Rohit are two such great leaders.
Kunal Bahl, Co-founder and CEO of Snapdeal said
Our entire team at Snapdeal is thrilled and honoured to have SoftBank as a strategic partner. With the support of Son- san and Nikesh, we are confident we will further strengthen our promise to consumers and create life changing experiences for 1 million small businesses in India.” Nikesh Arora will be joining the board of Snapdeal as part of this strategic investment by the SoftBank Group.
Indian ecommerce segment which is making a lot of buzz since past few months after Flipkart raising $1 Bn and Amazon investing $ 2Bn into its Indian arm, is all set to receive yet another big investment. If rumors are to be believed, Snapdeal is close to announce its $600 Mn funding round in the coming week.
However, Snapdeal said, “The company does not comment on speculation.” But reports suggest that the online retailer is raising between $600 – 650 Mn from SoftBank for 40% stake in the company. This will be the biggest investment for Snapdeal ever since its launch.