Snapdeal raises $200 mln led by Ontario Teachers’ Pension Plan: Reuters

Indian online marketplace Snapdeal has raised US$200 million, giving it a valuation of around US$6.5 billion, as the company looks to ramp up investments in logistics and infrastructure in the fast-growing domestic e-commerce sector.

The fundraising, led by Ontario Teachers’ Pension Plan and funds advised by Iron Pillar, comes at a time when there are increasing worries about incremental funding among Indian startups.

In December, Snapdeal co-founder had told Reuters the company is looking to increase spending on logistics and technology to better compete with rivals.

Indian e-commerce market, dominated by Flipkart, Amazon and Snapdeal, is estimated to be worth US$220 billion by value of goods sold by 2025. E-tailers, however, are racking up millions of dollars in losses in their bid to capture market share through deep discounts.

The latest fundraising comes after the company raised US$500 million last August in another round led by Alibaba Group Holding, SoftBank Group Corp and Foxconn.

Flipkart closed a US$700 million fundraising round last year.

(Reporting by Himank Sharma; Editing by Gopakumar Warrier and Miral Fahmy)

(This story has been edited by Kirk Falconer, editor of PE Hub Canada)

Photo courtesy of Reuters/Abhishek Chinnappa