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

15/02/2016 3:49 PM IST | Updated 15/07/2016 8:26 AM IST
Bloomberg via Getty Images
The 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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