Alibaba in talks over Snapdeal investment

Alibaba is rumoured to be considering an investment in Snapdeal as the Indian online marketplace seeks $1bn in its latest funding round.

Reuters sources have backed multiple reports from Indian media claiming that the two companies are in “ongoing” talks. Investor interest in supposedly “high”, but a deal has yet to be reached.

While a deal would be Alibaba’s first direct investment in India, the e-commerce giant has shown increasing interest in its neighbouring Asian market. Its affiliate company Ant Financial bought a 25 per cent stake in Indian mobile wallet Paytm last month.

Snapdeal is reported to be seeking $1 billion in its latest funding round to fuel growth. The online marketplace won a $627 million investment from Softbank in October. The Japanese bank was also an early backer of Alibaba.

The company competes with e-commerce rivals Flipkart and Amazon in India.

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