Jasper Infotech, which owns and operates online marketplace Snapdeal.com, has raised $627 million (Rs 3,845 crore) from Japanese internet, media and telecom conglomerate SoftBank, the largest single tranche investment in an Indian e-commerce company. The investment has been made through SoftBank’s recently created unit, SoftBank Internet and Media Inc (SIMI)
The investment in Snapdeal is the largest in India’s growing e-commerce sector since industry leader Flipkart raised $1 billion in July and Amazon said it would invest $2 billion in India
Though it did not disclose its stake, SoftBank will become the largest shareholder in Snapdeal, as a large investor. Snapdeal has raised close to $ 1 billion during this calendar year. Founded in 2010, Snapdeal has more than 25 million registered users and more than 50,000 business sellers.
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 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.”
Nikesh Arora will be joining the board of Snapdeal as part of this strategic investment by the SoftBank Group.
To read more check out the Press Release.