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Report Claims Snapdeal Could Get Backing From Alibaba, Foxconn

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Report Claims Snapdeal Could Get Backing From Alibaba, Foxconn

Alibaba Group Holding Ltd (NYSE: BABA) and FOXCONN TECHNOLOGY (OTC: FXCOF) are mulling a big investment in the India-based startup e-commerce platform Snapdeal.com, according to a report Tuesday.

The Report's Claims

Citing a source familiar with the deal, the Wall Street Journal said the potential $500 million investment would value the five-year-old Snapdeal at $5 billion.

For Alibaba, a Snapdeal stake could speed up its expansion into India's fast-growing e-commerce market, the Journal said.

Related Link: Alibaba, Foxconn In Talks To Jointly Invest $500 Million In Snapdeal.com

Foxconn would obtain a foothold in India, where it has strong demand for smartphones, while helping Foxconn's customers, including Xiaomi and Micromax Informatics, obtain a sales channel, according to the Journal.

India And The Internet

Among regions of the world, India is seeing the fastest growth by far in Internet adoption, according to a report earlier this year by the well-known analyst Mary Meeker.

Internet use grew 33 percent last year in India, versus 7 percent in the number-one world market, China, and by 2 percent in the U.S., according to Meeker's report.

Smartphone adoption jumped 55 percent in India, versus 21 percent in China.

About 65 percent of India's Internet traffic is via mobile devices, versus 22 percent in the U.S. and 30 percent in China, according to Meeker.

Related Link: India's Snapdeal.com In Talks To Acquire Mobile Payments Company Freecharger

Quick Look At Snapdeal

Snapdeal is owned by Jasper Infotech Pvt., according to the Journal, and last year obtained a $1 billion investment from eBay Inc (NASDAQ: EBAY) and Softbank Corp (USA) (OTC: SFTBF) that gave it a valuation at the time of $2 billion.

Launched in February 2010, Snapdeal.com calls itself "India's largest e-commerce marketplace" and says it has more than 20 million members, or one in six Internet users in India.


Image Credit: Public Domain

Posted-In: Jasper Infotech Pvt. Micromax Informatics Snapdeal.com Wall Street Journal XiaomiRumors Top Stories Tech Best of Benzinga

 

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