Snapdeal Parent Jasper Infotech Raises 200M Dollar In Funding At Valuation Of Over 6.5B Dollar
Snapdeal parent Jasper Infotech, has raised $200 million in a fresh funding round led by Ontario Teachers’ Pension Plan and Singapore-based investment entity Brother Fortune Apparel, among others. With the infusion of this capital, Snapdeal is valued at over $6.5 billion, a steep jump up from $4.8 billion in August when it raised $500 million.
The funds will be used to bolster its technology, logistics, payments and back-end infrastructure.
Commenting on the development, Jasper CFO Anup Vikal, said, “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.”
The five-year-old eCommerce company has more than 275,000 sellers and over 30 million products and caters to more than 6,000 cities and towns in the country.The latest round of fund raising comes at a time when the government is considering permitting 100% foreign direct investment (FDI) in the marketplace format of e-commerce retailing, the model followed by companies like Flipkart and Snapdeal.
Recently, Snapdeal’s arch rival Flipkart which is India’s largest eCommerce company, valued at $15 billion, has also held initial talks with investors to rack up $500-750 million in fresh capital. Reportedly, Alibaba which happens to be a major investor in Snapdeal, is also keen on acquiring a stake in Flipkart.Similarly, the Indian arm of Amazon received Rs 6,700 crore over the past one year to push the pedal on growth.