Snapdeal has received a funding of $200 million Ontario Teachers’ Pension Plan (OTPP), Iron Pillar and other investors. The latest round of funding values the company between $6.5 billion and $7 billion, making it the second-highest valued startup in the country. Flipkart owns the top spot as India’s largest e-commerce company and values at nearly $15 billion.
Snapdeal will use the raised capital to ramp up investments in logistics and infrastructure in the fast-growing domestic e-commerce sector. It has already spent nearly $35 million to buy 50 per cent stake in logistics services company GoJavas. The company had raised $500 million from Alibaba Group, Foxconn Technology Group and existing investor Softbank Group in August last year which had then valued the company at about $4.8 billion.
Anup Vikal, chief financial officer at Jasper Infotech, said in a statement
We see these investments as a continuing endorsement of Snapdeal’s strategy to build India’s most reliable and frictionless commerce ecosystem. We continue to make targeted investments in building internal and external capabilities that will enable us to consistently deliver optimal experience for the millions of buyers and sellers who transact daily on Snapdeal.
Snapdeal is striving to compete against the likes of Flipkart and Amazon. The Indian e-commerce market is expected to hit $38 billion in 2016 owing to increasing internet and mobile penetration.