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.
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.
Have a question on this or other Technology & Innovation topics? Click here to set up an enquiry call with Sanchit Vir Gogia.
Copyright © 2019 Greyhound Research. All rights reserved. You may share this research note using the options made available. Please don’t copy this research note (complete or parts) and distribute over the web and emails. Connect with us if you need clarifications.