Snapdeal, an online retailer from India is about to raise over USD 100 million from its shareholders like, Japan’s SoftBank and some new investors, as per a statement made by the company’s spokesperson.
As per a statement by CFO Anup Vikal, Snapdeal has enough cash for this year.
He stated, “About a $100 million plus is what we need, until we start being independent.”
Vikal added that some of Snapdeal’s existing investors including SoftBank, its largest backer, were willing to participate in the fundraising.
There is no statement from SoftBank on the matter.
Snapdeal’s logistics unit Vulcan Express and e-commerce solutions provider Unicommerce will break even in the quarter to June, giving a fillip to its profitability plan, added Vikal.
The company has cut costs by using automated systems to reduce labor costs, renegotiated vendor contracts and it plans to let go of excess floor space at its headquarters outside New Delhi, Vikal said.
Further Vikar said that the measures and a steep reduction in fulfillment costs have helped the company reduce losses sharply.
Though Vikal declined to comment on whether Snapdeal could be an acquisition target. As per reports, Alibaba is in early talks with SoftBank about potentially merging Snapdeal with local rival Paytm.
Speaking about digital payments arm FreeCharge, as per the reports, Snapdeal is looking to sell, Vikal said the company evaluates any “inbound interest” and some international players had shown interest in becoming partners in the business.