Online marketplace, Snapdeal raises $500 million in a fresh round of funding.
Jasper Infotech, which owns and operates online marketplace Snapdeal.com, has raised fresh capital, estimated at about $500 million, in a new round led by Chinese e-commerce giant Alibaba Group and Taiwanese electronics manufacturer Foxconn, tech news startup Re/Code claimed late on Sunday. Citing unnamed sources, the Vox Media-owned news outlet also said Snapdeal's largest stakeholder, Japanese internet, media and telecom giant SoftBank, has also participated in the round.
The news website did not provide any details relating to valuation or the stakes picked up by the new investors. However, when contacted by ET, a Snapdeal spokesperson denied the developments, and called it "speculation."
Both Alibaba Group and Foxconn, best known as a manufacturer of Apple's iPhones, had been in protracted negotiations with New Delhi-headquartered Snapdeal to invest in the latter, as they looked to grab a stronger foothold in the country's fast-burgeoning consumer economy.
In February this year, ET was the first to report that Jack Ma-led Alibaba Group had started negotiations to invest in the company. In May, ET also reported that Foxconn too had entered discussions to participate in Snapdeal's upcoming round of funding, which could potentially value the company at about $5 billion.
However, a mix of valuation mismatches and increasingly stringent performance-led metrics being demanded by potential investors, have led to a delayed closure of the transaction.
Snapdeal, along with Bengaluru-based rival Flipkart, have raised nearly $3 billion among themselves in 2014, while Jeff Bezos-led Amazon has committed to pump in $2 billion to its Indian operations, the third major ecommerce player in the country.
However, a clutch of new players, led by Paytm, have also begun to challenge the incumbents, especially in the fund-raising drives.
Live: People Reading Now