Report: Snapdeal To Get Backing from Alibaba Group Holding Ltd, Foxconn Technology Co Ltd

Alibaba Group Holding Ltd

and Foxconn Technology Co Ltd (TPE: 2354) are mulling a big investment in the India-based startup e-commerce platform Snapdeal.com, according to a report Tuesday. http://www.wsj.com/article_email/alibaba-foxconn-in-talks-to-invest-500-million-in-indias-snapdeal-1434444149-lMyQjAxMTA1MzE3NjcxNjYwWj 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. Foxconn would obtain a foothold in India, where it has srong demand for smartphones, while helping Foxconn's customers, including Xiaomi Corp. and Micromax Informatics Ltd., obtain a sales channel, according to the Journal. 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. http://www.kpcb.com/internet-trends 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. Snapdeal is owned by Jasper Infotech Pvt., according to the Journal, and last year obtained a $1 billion investment from eBay Inc

and Softbank Corp

that gave it a valuation at the time of $2 billion. Launched in February 2010, Snapdeal.com calls itselfIndia's largest e-commerce marketplace and says it has more than 20 million members, or one out of six Internet users in India. http://www.snapdeal.com/