SoftBank to invest $627 million in Snapdeal

Japanese telecom giant becomes largest investor in Snapdeal

SoftBank to invest $627 million in Snapdeal

Online retailer Snapdeal said on Tuesday that it has received investments of $627 million from Japanese telecom and Internet giant SoftBank. 

With this, Softbank will become the largest investor in Snapdeal, the Japanese company said.

The names of other investors who participated in the latest funding round for Snapdeal were not disclosed.

SoftBank Corp Vice-Chairman and CEO of SoftBank Internet and Media, Inc (SIMI) Nikesh Arora will join the board of Snapdeal as part of the strategic investment.

The investments come a day after SoftBank announced its plans to invest a whopping $10 billion in India in coming years.

Through this strategic investment and partnership with Snapdeal, the SoftBank Group aims to further strengthen its presence in India and leverage synergies with its network of Internet companies around the world, Masayoshi Son, Chairman and CEO of SoftBank Corp said.

“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,” Son, who is Japan’s richest businessman, said.

Delhi-based Snapdeal has so far raised $1 billion this year.

Snapdeal is eyeing 3-4 firms, especially those in mobile technology. Co-founder Kunal Bahl said, “We are looking at acquisition opportunities across sizes, ranging from less than $1 million to $100 million.”

Besides, Snapdeal will open a R&D centre in Bangalore with 500 engineers in the next two weeks.

SoftBank has also invested in mobile ad firm InMobi and has a joint venture with Bharti Enterprises in messaging app Hike. 

$210 mn funding for Ola

Ola (formerly Olacabs), a popular mobile app for cab-booking, on Tuesday confirmed an agreement to raise $210 million (Rs 1,260 crore) from SoftBank and existing investors, Tiger Global, Matrix Partners India and Steadview Capital. 

The investment will propel Ola to be an integral part of India’s transportation ecosystem across newer cities by making available an efficient and convenient option for users and service providers, Ola CEO Bhavish Aggarwal said. 

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