<p>Snapdeal CEO: &#039;Excited to have Softbank on
board&#039;</p>
<p>Kunal Bahl, Co-founder and CEO of Snapdeal,
discusses Softbank&#039;s $627 million investment in the Indian
e-retailer. He also explains why its
&#039;cash-on-delivery&#039; business model remains
effective.</p>
Japanese telecommunications and internet giant Softbank Group
announced on Tuesday that it invested $627 million in Indian online
retailer Snapdeal, making it the largest investor in the e-commerce
firm.
Softbank, a major shareholder in Yahoo! Japan, U.S. carrier Sprint and recently listed Chinese e-commerce giant Alibaba, said the deal aims to strengthen its presence in India and leverage synergies with its network of Internet companies around the world.
Read MoreCatty rivalry in India's e-commerce space
"We believe India is at a turning point in its development and have
confidence that India will grow strongly over the next decade. As part of this belief, we intend to deploy significant capital in India over the next few years to support development of the market," said Masayoshi Son, chairman and CEO of Softbank.
Softbank, a major shareholder in Yahoo! Japan, U.S. carrier Sprint and recently listed Chinese e-commerce giant Alibaba, said the deal aims to strengthen its presence in India and leverage synergies with its network of Internet companies around the world.
Read MoreCatty rivalry in India's e-commerce space
"We believe India is at a turning point in its development and have
confidence that India will grow strongly over the next decade. As part of this belief, we intend to deploy significant capital in India over the next few years to support development of the market," said Masayoshi Son, chairman and CEO of Softbank.
New Delhi-based Snapdeal, a website where local and international retailers can list their merchandise, counts BlackRock, Temasek and eBay
among its investors. Founded in 2010, the website now has 25 million
subscribers and 50,000 businesses selling on its platform.
Softbank's investment is the largest in India's e-commerce sector after rival Flipkart raised $1 billion in July, according to Reuters.
Read MoreMeet the man behind the 'Amazon of Southeast Asia'
The country's e-commerce market is witnessing rapid growth, thanks to rising disposable incomes and greater internet penetration. However, competition is intensifying as players offer heavy discounts and embark on high-voltage advertising campaigns.
The industry is forecast to quadruple to $43 billion over the next five years from $10 billion in 2013, according to Nomura.
Softbank's investment is the largest in India's e-commerce sector after rival Flipkart raised $1 billion in July, according to Reuters.
Read MoreMeet the man behind the 'Amazon of Southeast Asia'
The country's e-commerce market is witnessing rapid growth, thanks to rising disposable incomes and greater internet penetration. However, competition is intensifying as players offer heavy discounts and embark on high-voltage advertising campaigns.
The industry is forecast to quadruple to $43 billion over the next five years from $10 billion in 2013, according to Nomura.
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