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Snapdeal Raises $200 Million, Is Now Valued At Around $6.5 Billion

Snapdeal Raises $200 Million, Is Now Valued At Around $6.5 Billion
The Snapdeal.com website is displayed on a laptop computer in an arranged photograph in New Delhi, India, on Thursday, Aug. 21, 2014. India doesnt allow foreign-controlled companies to sell products online. Thats led web retailers such as the local Snapdeal to a different model than the one pioneered by Amazon: they operate online marketplaces and local traders sell goods in a $3 billion e-commerce market. Photographer: Kuni Takahashi/Bloomberg via Getty Images
Bloomberg via Getty Images
The Snapdeal.com website is displayed on a laptop computer in an arranged photograph in New Delhi, India, on Thursday, Aug. 21, 2014. India doesnt allow foreign-controlled companies to sell products online. Thats led web retailers such as the local Snapdeal to a different model than the one pioneered by Amazon: they operate online marketplaces and local traders sell goods in a $3 billion e-commerce market. Photographer: Kuni Takahashi/Bloomberg via Getty Images

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

The fundraising, led by Canada's 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 $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 $500 million raised last August in another round led by Alibaba Group Holding, SoftBank Group Corp and Foxconn.

Flipkart closed a $700 million fundraising round last year.

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This article exists as part of the online archive for HuffPost India, which closed in 2020. Some features are no longer enabled. If you have questions or concerns about this article, please contact indiasupport@huffpost.com.