Watch out Flipkart, Amazon; Snapdeal to raise $500 mn from Alibaba, SoftBank, Foxconn - Online ecommerce giant Snapdeal is set to secure $500 million (Rs 3,206.5 crore) in investment from Alibaba Group Holding Ltd, SoftBank Group Corp and Foxconn, the trading name of Hon Hai Precision Industry Co Ltd, a source revealed on Monday.
Online tech publication Re/code first informed about the investment on Sunday quoting multiple sources, saying the deal had already been closed.
The company competes with Flipkart Online Services Pvt Ltd and the local subsidiary of Amazon.com Inc in the country's online shopping market, which Morgan Stanley evaluates will be worth $102 billion by 2020.
Snapdeal and SoftBank could not be reached for immediate comment. Alibaba and Foxconn refused to comment.
The deal is Chinese e-commerce firm Alibaba's first direct investment in India. Alibaba affiliate Ant Financial Services Group in February acquired 25 percent of Indian payment services provider One97 Communications.
In October, Snapdeal obtained a $627 million investment from Japan's SoftBank. In March, Alibaba was in direct funding discussions with Snapdeal but instead chose to invest together with SoftBank and Foxconn, the person familiar with the deal said.
In March, Snapdeal Chief Executive Kunal Bahl said his company was not searching for investments immediately and was well capitalized for the next couple of years.