China’s Alibaba Group, Taiwan-based Foxconn Group and Japan’s SoftBank Corp. led an investment of US$500 million in Snapdeal, in a deal that valued the five-year old Indian e-commerce firm at about US$5 billion.
Meanwhile, eBay Inc., which was an early investor in Snapdeal, has cashed in part of its stake, according to the Wall Street Journal.
Foxconn was quoted as saying that it contributed US$200 million to Snapdeal’s latest fund-raising round, giving the Taiwan group a 4.27 percent stake in the Indian online retailer.
The investment came from Foxconn subsidiary FIH Mobile, which is involved in assembly of Xiaomi and Huawei handsets.
Alibaba also invested US$200 million in Snapdeal, according to the report.
The investment in Snapdeal will give the Chinese firm a foothold in the rapidly growing Indian e-commerce market as it faces increased competition and slowing revenue growth at home.
Foxconn, meanwhile, said its Snapdeal investment will help the former gain “insights, knowledge and expertise” on a fast-growing market.
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