Snapdeal Gets Around $150 Million Funding From SoftBank

When there are many business initiatives from other E-commerce giants like Flipkart and Amazon raising more funds in order to increase its valuation, Snapdeal gets a sigh of relief from SoftBank. Snapdeal would be getting close to $150 million worth funds from SoftBank in order to increase the company’s capital valuation for the current financial year 2017-18.

The Delhi-based online E-commerce company is receiving this huge capital funds from its largest shareholder, SoftBank. With many other companies like Amazon, Flipkart and Paytm depending on their big investors to get more funding, Snapdeal will definitely have an advantage over the other rivals.

This funding is coming at such a crucial time for Snapdeal as the other companies are suffering from a shortage of funds. This investment from SoftBank will see Snapdeal grow in a new dimension altogether.

During February 2016, Snapdeal was on a peak with reference to the capital valuation as it reached an awesome $7 billion mark as it had received $200 million worth funding from Canada Teachers’ Pension Plan.

In the same year, the company had to incur heavy losses amounting Rs.2,969 Crore, while another digital e-wallet company Freecharge incurred losses worth Rs.270 Crore. The other two companies which experienced losses were Amazon and Flipkart. According to an online report by Firstpost, Amazon touched losses up to Rs.3,572 Crore and Flipkart incurred losses up to Rs.2,306 Crore by the year ending March 2016.

Two years ago, the company’s valuation was $3 billion and considering the recent sales in the year 2016 and 2017, the valuation has definitely touched the sky. If the investment decision goes on well and if the final funding is exercised then the company’s capital will increase to 40%.

Jasper Infotech which is the parent organisation of Snapdeal is headquartered in New Delhi. The owners of this franchise - Rohit Bansal and Kunal Bahl, sent an e-mail to all the employees mentioning the company’s execution were not up to the mark.

Due to the incorrect execution, there was a streak of losses incurred by the firm. In a conversation with the Rohit Bansal, the Co-founder of Snapdeal, he said, “ We are now building new teams to expand the size of business in the coming months. We are confident that by the year ending 2017, we will be a larger E-commerce online setup and will continue to give stiff competition to the other E-commerce players”.