Investments flowing in at Snapdeal

MUMBAI, INDIA: Snapdeal, valued at $5 billion, has found more investors.

Kunal Bahal, CEO, Snapdeal, has confirmed that China's Alibaba Group Holding, Japan's SoftBank Group and Foxconn will lead an investment of $500 million (about Rs 3,269 crore) in the online marketplace. The investment will help Bahl to expand in the country's fast growing e-commerce sector.

Existing investors Temasek, BlackRock, Myriad and Premji Invest also participated in the funding round, Snapdeal said, but did not furnish any details.

The move is a vote of confidence from three of the world's biggest technology companies in Snapdeal, which in October got a $627 million investment from SoftBank, also an early backer of Alibaba.

Separately, FIH Mobile, a unit of Foxconn, the trading name of Hon Hai Precision Industry Co, said it was buying a 4.27 percent stake in Snapdeal for $200 million via its Singapore-based subsidiary Wonderful Stars.

Snapdeal had raised more than $1 billion, from investors including Softbank ($627 million) and iconic business leader Ratan Tata (personal investment).

Meanwhile, EBay, an early backer of the company, is selling part of its stake in a transaction which also involves fresh funding.

EBay said in a statement it has sold a portion of its stake and would focus on boosting its own business in the country.

"Welcoming Alibaba and Foxconn to the @Snapdeal family. We never thought we'd come this far. Team super energised to create impact for India," an elated Bahal tweeted.