SoftBank Shows Interest In Snapdeal Might Lead $100 Million Funding Round

Japan’s Softbank has shown interest in leading a funding round of $100 million (or Rs 7,114 crore) in Indian e-commerce firm Snapdeal, sources close to both the companies told CNBC-TV18. The other investors who are interested in the round are a clutch of smaller Chinese and American investors.

Others think having long tail might have a problem in scalability. “Snapdeal has gone through an erosion of trust, which is very important in e-commerce,” said Sanchit Vir Gogia, founder and chief analyst of Greyhound Research. “The market is big and growing, but to do something in this space is equally risk-averse.”

Gogia said that $100 million isn’t enough for sale. “You need about $1 billion… or at least $500-700 million in the next 36 month,” he added.

[CNBC-TV18]


Analyst:

Sanchit Vir Gogia: Sanchit is the Chief Analyst, Founder & CEO of Greyhound Research, a Global, Award-Winning, Technology & Innovation Research & Advisory firm. To read more about him, click here.

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