Who’s pouring $500 million into Indian e-tailer Snapdeal?
August 18, 2015 09:06 AM
(Bloomberg)—Foxconn Technology Group, Alibaba Group Holding Ltd. and SoftBank Group Corp. will invest $500 million in Snapdeal, the Indian e-tailer said in a statement.
While Jasper Infotech Pvt., which owns Snapdeal, did not specify the individual investments being made, FIH Mobile Ltd., a unit of Foxconn, said it would invest $200 million. Snapdeal, No. 47 in the Internet Retailer 2015 Asia 500 Guide, said existing investors Temasek Holdings Pte and BlackRock Inc. also participated in the round.
On completion of the transaction, FIH Mobile will own 4.27% of Snapdeal, the mobile phone-maker said in a separate statement to the Hong Kong Stock Exchange today, valuing the Indian e-commerce company at about $4.7 billion. FIH Mobile’s holding includes a $50 million stake it bought from eBay Inc., which separately announced it was selling a part of Snapdeal.
Snapdeal is one of India’s three biggest e-tailers. It began as a coupon platform similar to Groupon Inc., No. 30 in the Internet Retailer 2015 Top 500 Guide, when it was founded in February 2010, and later evolved into a marketplace for everything from underwear to smartphones.
FIH Mobile said it would buy 2,967 compulsorily convertible cumulative preference shares in Jasper from EBay Singapore Services Pte. for $50 million cash, according to the filing. It would also subscribe to 79,113 such shares of Jasper for $150 million.