Indian e-commerce giant Snapdeal recently announced that it received $200 million funding from investors such as Canada based Iron Pilar. Ontario Teachers’ Pension Plan (OTPP) is also in the list of investors which helped Snapdeal to raise Rs.1362.
$500 million funding has been already raised by the Snapdeal which was powered by names such as Sofbank, Foxconn and Alibaba Group. The transaction took place in August last year when the company was valued at $4 to $5 billion. Snapdeal has been on long acquisition hunt since last year. It bought well known startups such as MartMobi, RupeePower, FreeCharge, Fashiate, Reduce Data and LetsGoMo.
Third party logistics company GoJavas has already received $20 million investment from Snapdeal. Chief Financial Officer AnupVikal from Snapdeal informed the press that the fundraising was aimed at creating frictionless and reliable commerce ecosystem for Indian markets. Internal and external capabilities will be improved using these investments to deliver superior experience to the buyers.
The e-commerce company is currently serving in 6000 major India cities and towns. This massive reach has been made possible by 275,000 sellers with 30 million products.
If you look at the investor’s profile of the Ontario Teachers’, the biggest single-profession pension plan in Canada has $154.5 billion assets. Mid stage technology investments are the core focus of Iron Pillar, a venture capital fund. The company aims to focus more in investment gap for startups in India.
Snapdeal is already known for the backing of powerful investors. The e-commerce firm founded in 2010 has been backed by Ratan Tata, eBay Inc, BlackRock, Premji Invest, Temasek, Bessemer Venture Partners and Intel Capital. The company has grand plans for upcoming financial year.
At a time when Indian startups are complaining about lack of funding, Iron Pillar’s funding to Snapdeal is a unique event.